The other factors included concerns on global trade as a result of the tariffs war between the United States and China, The Edge quoted Sapura Energy president and group chief executive officer Shahril Shamsuddin as saying.

These factors had resulted in uncertainty over the incipient recovery of the O&G industry.

“I think the sentiments during the rights issue was a bit muddled because there were so many conflicts,” Shahril told reporters after an extraordinary general meeting (EGM) to seek shareholders’ approval for the group’s joint venture with OMV Aktiengesellschaft.

“Institutions held back because they were uncertain of the industry’s recovery. Unless you are in the business, you cannot see the pick-up in activity in the sector,” he said.

He said the proceeds from the rights issue would be utilised to pare down the company’s debt level.

The Edge also reported Shahril as saying the strength of the company had been reinforced by the emergence of Permodalan Nasional Bhd as its largest shareholder.

He said this was a testament to the group’s potential for growth going forward.

The shareholders later approved the resolution, which will see OMV purchasing a 50% stake in Sapura Upstream Sdn Bhd for total proceeds of US$975 million (RM4 billion).