Page 7 - AsianOil Week 13 2022

AsianOil COMMENTARY AsianOil

Even as oil prices have risen steadily over the government over a plan to take on a signifi-
the past year and pandemic-related restric- cant stake in Sapura.
tions have eased, Sapura’s performance has not “The group has always been and will continue
improved. For the last quarter, which ended to be strictly guided by an established frame-
on January 31, the company posted a net loss work for any investment or divestment con-
of MYR6.6bn ($1.6bn), down from a net loss of sideration,” Petronas stated. It noted, however,
MYR216mn ($51.3mn) in the same quarter a that it “remains committed to working closely”
year ago. with oil and gas services and equipment (OGSE)
In recent weeks, Sapura and its subsidiar- players as the industry recovers from the early
ies have been hit with a series of winding-up waves of the COVID-19 pandemic. The com-
petitions over non-payment issues. One such pany did not elaborate further.
petition, lodged by Sun Hardware Enterprise
against Sapura Fabrication, recently resulted What next?
in a settlement. Under the restraining order According to Najib’s warning, 10,000 “high-pay-
obtained by Sapura, though, the remaining ing jobs” and around 4,500 vendors and suppli- In recent weeks,
petitioners will be unable to take action against ers would be affected if Sapura went bankrupt,
the company for three months, unless permit- which is why he is urging the current govern- Sapura and its
ted by a court. ment not to allow the company to fail. subsidiaries have
Sapura will be hoping that this extra time will Permodalan Nasional (PNB), a state-con-
allow it finalise a debt restructuring plan. Bor- trolled unit trust company, owns a 40% stake in been hit with a
relli’s appointment appears to be a step towards Sapura and Najib criticised it for not investing
this, given his expertise in restructuring and more money into the firm amid its financial series of winding-
insolvency practice. woes. Instead, PNB urged the contractor to dis-
“Mr Cosimo Borrelli is also well regarded for pose of assets in order to raise funds, but accord- up petitions over
his work as an independent director to listed ing to Najib, the pandemic and related border non-payment
companies internationally, especially those closures and lockdowns complicated efforts to
undergoing or targeting turnarounds, merg- sell assets. issues.
ers and acquisitions, divestments and special “Without bank facilities and working capital
situations,” Sapura stated in a filing with Bursa to continue existing or undertake new projects,
Malaysia. Sapura will certainly go bankrupt,” Najib said.
But while Petronas may have denied that
Reports denied it will be stepping in, there are hopes that a
It appears that, whatever Sapura’s fate, a sale to restructuring plan will be agreed on sooner
Petronas can be ruled out for now. On March 25, rather than later. With winding-up petition-
Petronas said it wished to “categorically deny” ers waiting to take action, Sapura has little
reports and speculation that it was in talks with time to lose.™

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