- Companies in the news
Translated by Google Translator:
KUALA LUMPUR (May 20): Based on corporate announcements and news flow today, companies that may be in focus on Monday (May 23) could include the following: KNM, CLIQ, Evergreen Fibreboard, Tanjung Offshore, Aturmaju, and EA Technique.
KNM Group Bhd has bagged a US$43 million (RM175 million) contract from Norman Process Oils Malaysia Plant Sdn Bhd to undertake engineering, procurement, and construction (EPC) works for the treated distillate aromatic extract (TDAE) plant at Tanjung Langsat Port, Johor.
The TDAE plant is to produce carcinogen-free (green) rubber process oils for synthetic rubber and tyre industries.
In a filing with Bursa Malaysia today, KNM said its wholly-owned subsidiary KNM Process Systems Sdn Bhd has accepted a letter of award from Norman for the proposed project.
It said the duration of the contract will be for 20 months, commencing from a date that is subject to the execution of a formal contract agreement to be duly signed between the two parties.
KNM noted while the contract is subject to certain risks mainly in the power, oil, gas, petrochemical, and energy industries, the group is already operating in these industries and hence, would continue to be exposed to risk factors that it currently faces.
CLIQ Energy Bhd said today it has received an application to strike out the winding up petition from Best Oracle Sdn Bhd, on the basis that the shareholders did not approve the winding up.
Best Oracle, comprising five members of CLIQ's management team led by its managing director and chief executive officer Ahmad Ziyad Elias, controls about 20% stake in the special purpose acquisition company.
In a filing to the bourse, CLIQ said the company had on May 19 received the application to strike out the petition from Messrs. Yashar & Associates, which is representing Best Oracle.
The company said the high court has fixed May 27 for the next case management to obtain the registrar's certificate of procedural compliance, for the hearing on May 31.
Wood based products maker Evergreen Fibreboard Bhd reported a net profit of RM20.62 million in its first financial quarter ended March 31, 2016 (1QFY16), which was 2.8% higher than its 1QFY15 net profit of RM20.06 million, as revenue strengthened.
Its bourse filing today also showed that the quarter recorded lower taxation of RM3.68 million compared to RM4.28 million a year ago.
Meanwhile, it saw a 6.3% rise in revenue to RM246.8 million in the quarter under review from RM232.13 million a year ago, contributed by higher selling price.
On prospects, Evergreen said the growing Malaysian wood panel and furniture industry, coupled with the group's internal strategy on cost reductions, cutting off losses on non-performing assets and increasing productivity, are factors which will enhance the group's performance.
Tanjung Offshore Bhd said it aims to eventually have a 70:30 contribution ratio between its oil and gas (O&G) segment and its other business segments, based on its diversification plans.
Its group chief executive officer Rahmandin Md Shamsudin said the O&G services provider aims to diversify into aerospace and education, in addition to its construction venture.
He said the group would like to reduce its reliance on the upstream O&G business, amid challenging times.
"Some of the areas that are doing well include infrastructure where there are opportunities, as well as education.
"For aerospace, we are considering a wide scope. But it's difficult for us to explain which areas we're looking at," he said.
Rahmandin said Tanjung Offshore is in exploratory talks with several parties on its aerospace initiative, noting that UMW Holdings Bhd, which is building a RM750 million plant, and Rolls Royce would be good potential partners to speak with in future as these are established aerospace players.
"We are in the midst of talking to different parties, but we have not signed any memorandum of understanding yet. So, it's not official," said Rahmandin.
On the RM20 million lawsuit filed against its former directors, relating to the acquisition of Gas Generators (Malaysia) Sdn Bhd, Rahmandin said this will not affect the performance of the company.
"As you may know, the previous managing director Datuk Harzani Azmi has been charged by MACC (Malaysia Anti-Corruption Commission). The process is ongoing. And we have already initiated a civil suit against some of the officers, directors of the previous board.
"I cannot say much as it may jeopardise the actions we are taking, but we want to show that we are doing something about those legacy issues," he said.
Following a brief trading halt in its shares today, Aturmaju Resources Bhd responded to the unusual market activity query from Bursa Malaysia, after a dramatic plunge in its share price of nearly 30%.
In its response, Aturmaju stated it was not aware of any causes for the share price movement, and said it was in full compliance with immediate disclosure obligations.
EA Technique (M) Bhd's net profit for the first quarter ended March 31, 2015 (1QFY16) increased by 3.4 times to RM25.19 million from RM7.37 million in the corresponding quarter a year ago.
For the quarter under review, its revenue also grew by 69.9% to RM123.56 million from RM72.73 million in 1QFY15.
According to the bourse filing, the increase in performance was mainly due to recognition of revenue from engineering, procurement, construction, installation and commissioning project that was secured at the end of 2014 and delivery of floating, storage and offloading vessel Nautica Tembikai to an oil field in June 2015.
It added that the Group had recorded unrealised forex translation gain for the period under review amounting to RM17.2 million.
On the current year's prospect, the Group is expected to acquire two oil tankers in the second quarter of 2016 (2Q 2016). Two harbor tugs will be delivered in 2Q 2016 and another two harbor tugboats is expected to be delivered in 3Q 2016 for a client in which the contract has been secured.
"The expansion of the company's fleet of marine vessels is expected to enhance the company's revenue and profitability," it said.
As of March 31, 2016, the Group's order book was approximately RM1.2 billion with additional RM350 million potential for extension period.
