KUALA LUMPUR (March 28): Cash-strapped oil and gas service provider Sapura Energy Bhd has appointed restructuring specialist Cosimo Borrelli as its non-independent and non-executive director effective last Friday (March 25).

In a Bursa Malaysia filing last Friday, the group said the Australian specialist is currently the leader of the Asia-Pacific and the Caribbean restructuring practice of Kroll.

He is also a well-known restructuring and insolvency practitioner in Asia having worked exclusively in this area since 1990, Sapura said.

“Cosimo Borrelli is also well regarded for his work as an independent director to listed companies internationally, especially those undergoing or targeting turnarounds, mergers and acquisitions, divestments and special situations.

“Borrelli's assignments often have a cross-border focus, including work in Hong Kong, China, Singapore, India, Taiwan, Malaysia, Australia, the US, the UK, Europe, Bermuda, the British Virgin Islands, the Cayman Islands and Africa,” it elaborated.

Borrelli, 55, holds a Bachelor of Arts in Economics from the University of Adelaide, Australia.

On March 18, Sapura Energy saw its net loss for the fourth quarter ended Jan 31, 2022 (4QFY22) widen to a staggering RM6.61 billion, compared with a loss of RM216.03 million a year prior, largely due to impairment on goodwill worth RM3.29 billion and impairment on property, plant and equipment worth RM2.1 billion.

Its quarterly revenue dropped significantly by 68.61% to RM453.14 million from RM1.44 billion for the previous year, primarily due to a lower percentage of completion recognised in the quarter resulting from recognition of foreseeable losses and higher project costs in the engineering and construction (E&C) business segment.

For the full year ended Jan 31, 2022 (FY22), the group recorded a net loss to the tune of RM8.9 billion — its highest ever — from a net loss of RM160.87 million for the prior year as it realised impairment on goodwill and property, plant and equipment worth RM5.39 billion collectively.

Meanwhile, annual revenue fell by 22.84% to RM4.13 billion from RM5.35 billion for FY21 due to lower contributions from its E&C, and operation and maintenance segments.

At the time of writing on Monday, Sapura Energy traded five sen or 16.67% higher at 3.5 sen, valuing the group at RM559.27 million.

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Sapura Energy 4Q net loss widens to record RM6.61b, full-year loss at RM8.9b
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Source: TheEdge - 29 Mar 2022