Tuesday, July 25th, 2017

 

Sapura Energy sees subdued activity, intense competition

PETALING JAYA: Upstream oil and gas service provider Sapura Energy Bhd, which has secured new jobs worth RM6.3 billion this year, expects activity levels to remain subdued in the near term and competition to remain intense, despite a rebalancing of supply and demand dynamics triggering a return in investment appetite.

The group believes that oil price will remain volatile in the medium term driven by fundamental supply and demand dynamics.

Some of the notable wins for the group include the Trans Anatolian Gas Pipeline in Turkey, EPCIC of B-127 Project in India, KMZ sour gas pipeline in Mexico, long-term Plug and Abandonment contract in Brunei, and decommissioning work in Malaysia, Brunei and Australia.

As for its exploration and production segment, its B15 SK310 gas field is seeing significant progress and is expected to produce its first gas by third quarter of this year. This is coupled with the additional gas discoveries for SK408 offshore Sarawak.

Going forward, Sapura which saw a weak first quarter in the current financial year, will be leveraging on its in-house expertise to identify new opportunities to grow its portfolio of resources and reserves.

“We will continue to pursue our strategies on global market expansion and cost optimisation, and setting the scene right as the industry finds its way back to recovery,” it said in a statement released after its AGM yesterday.

Sapura’s share prices dipped 1.27% to close at RM1.55. Some 5.17 million shares changed hands, bringing its market capitalisation to RM9.28 billion.


Sapura sees subdued activity, intense competition

PETALING JAYA: Upstream oil and gas service provider Sapura Energy Bhd, which has secured new jobs worth RM6.3 billion this year, expects activity levels to remain subdued in the near term and competition to remain intense, despite a rebalancing of supply and demand dynamics triggering a return in investment appetite.

The group believes that oil price will remain volatile in the medium term driven by fundamental supply and demand dynamics.

Some of the notable wins for the group include the Trans Anatolian Gas Pipeline in Turkey, EPCIC of B-127 Project in India, KMZ sour gas pipeline in Mexico, long-term Plug and Abandonment contract in Brunei, and decommissioning work in Malaysia, Brunei and Australia.

As for its exploration and production segment, its B15 SK310 gas field is seeing significant progress and is expected to produce its first gas by third quarter of this year. This is coupled with the additional gas discoveries for SK408 offshore Sarawak.

Going forward, Sapura which saw a weak first quarter in the current financial year, will be leveraging on its in-house expertise to identify new opportunities to grow its portfolio of resources and reserves.

“We will continue to pursue our strategies on global market expansion and cost optimisation, and setting the scene right as the industry finds its way back to recovery,” it said in a statement released after its AGM yesterday.

Sapura’s share prices dipped 1.27% to close at RM1.55. Some 5.17 million shares changed hands, bringing its market capitalisation to RM9.28 billion.


T7 acquires stake in Australian oil & gas producer explorer Triangle Energy

PETALING JAYA: T7 Global Bhd, which returned to the black in the first quarter of the financial year ending Dec 31, 2017, has acquired a substantial 9.8% equity interest in Australian oil and gas producer and explorer, Triangle Energy Global Ltd, for US$500,000 (equivalent to RM2.15 million).

In a filing with Bursa Malaysia, T7's board announced that it had on July 25 acquired the stake representing 16.47 million shares, from Tamarind Classic Resources Pvt Ltd.

The group which is predominantly involved in the provision of services to the oil and gas sector, will fund the acquisition with internally generated funds.

The investment in Triangle Energy, which has operated assets in Australia and Indonesia, will allow T7 to explore opportunities in the emerging Perth Basin Oil and Gas area located north of Perth, in Western Australia.

Triangle currently has 78.75% interest in Cliff Head Oil Field, which produces 1,300 barrels of oil per day. The oil field includes the Arrowsmith Stabilisation Plant and pipeline

T7's shares rose 5.26% to 40 sen with some 2.19 million shares changing hands. T7's market capitalisation stood at RM152.61million.


T7 acquires stake in Australian exploration and production co Triangle Energy

PETALING JAYA: T7 Global Bhd, which returned to the black in the first quarter of the financial year ending Dec 31, 2017, has acquired a substantial 9.8% equity interest in Australian oil and gas producer and explorer, Triangle Energy Global Limited, for US$500,000 (equivalent to RM2.15 million).

In a filing with Bursa Malaysia, T7's board announced that it had on July 25 acquired the stake representing 16.47 million shares, from Tamarind Classic Resources Pvt Ltd.

The group which is predominantly involved in the provision of services to the oil and gas sector, will fund the acquisition with internally generated funds.

The investment in Triangle Energy, which has operated assets in Australia and Indonesia, will allow T7 to explore opportunities in the emerging Perth Basin Oil and Gas area located north of Perth, in Western Australia.

Triangle currently has 78.75% interest in Cliff Head Oil Field, which produces 1,300 barrels of oil per day. The oil field includes the Arrowsmith Stabilisation Plant and pipeline

T7's shares rose 5.26% to 40 sen with some 2.19 million shares changing hands. T7's market capitalisation stood at RM152.61million.


HLIB Research maintains calls on Rohas Tecnic, Axis-REIT:

PETALING JAYA: HLIB Research, which is positive over loss-making Rohas Tecnic Bhd, maintained a 'buy' call on its shares, following the finalisation of its plans to acquire 75% stake in HG Power Transmission Sdn Bhd.

The research house has a price target of RM1.39 for the company, said the deal was attractive as the purchase consideration was “significantly below industry average and issue price.”

Its share price fell two sen to close at RM1.13, with some 617,900 shares traded.

In addition, HG Power's orderbook which currently stands at more than RM400 million will give Rohas Tecnic's orderbook, which currently stands at RM 300 million, an added boost. Its net gearing is expected to be at 6% post-acquisition.

The acquisition valued at RM91.66 million will be funded by the issuance of new shares at 95 sen per unit, while the group will also be forking out RM22.5 million from internally generated funds.

HG Power, a transmission lines contractor has been profitable in the last three financial years and for FYE 31 Dec 2016, recorded a revenue of RM211 million and a profit after tax of RM10.2 million. Rohas Tecnic registered a net loss of RM20.3 million on revenue of RM53.25 million in the first quarter ended March 31, 2017.

Meanwhile, the research house maintained a 'hold' call on Axis Real Estate Investment Trust (Axis-REIT) at an unchanged price target of RM1.71. Its share price fell one sen to close at RM1.63 yesterday, with some 59,400 shares changing hands.

The group announced in a filing on Monday, that it is acquiring two new parcels of land and buildings in Kuantan for RM155 million, which will be funded by existing and new bank borrowings.

“We are positive on this yield-accretive acquisition with a net yield of 7% vis-à-vis its current yield of circa 5.3%. The property will be fully tenanted under long leasing term. Estimated impact to our earnings is circa +4-5% after financing cost. However, we make no changes to our forecast pending analyst briefing,”HLIB said.

Axis-REIT's net profit for the second quarter ended June 30, fell to RM23.27 million from RM36.45 million a year ago.

This was on only marginally lower revenue of RM41.64 million for the quarter under review, from RM41.78 million a year ago.


Buy Rohas, Hold Axis-REIT

PETALING JAYA: HLIB research which is positive over loss-making Rohas Tecnic Bhd, maintained a BUY call on its shares, following the finalisation of its plans to acquire 75% stake in HG Power Transmission Sdn Bhd.

The research house has a price target of RM1.39 for the company, said the deal was attractive as the purchase consideration was “significantly below industry average and issue price.”

Its share price fell two sen to close at RM1.13, with some 617,900 shares traded.

In addition, HG Power's orderbook which currently stands at more than RM400 million will give Rohas Tecnic's orderbook, which currently stands at RM 300 million, an added boost. Its net gearing is expected to be at 6% post-acquisition.

The acquisition valued at RM91.66 million will be funded by the issuance of new shares at 95 sen per unit, while the group will also be forking out RM22.5 million from internally generated funds.

HG Power, a transmission lines contractor has been profitable in the last three financial years and for FYE 31 Dec 2016, recorded a revenue of RM211 million and a profit after tax of RM10.2 million. Rohas Tecnic registered a net loss of RM20.3 million on revenue of RM53.25 million in the first quarter ended March 31, 2017.

Meanwhile, the research house maintained a HOLD call on Axis Real Estate Investment Trust (Axis-REIT) at an unchanged price target of RM1.71. Its share price fell one sen to close at RM1.63 yesterday, with some 59,400 shares changing hands.

The group announced in a filing on Monday, that it is acquiring two new parcels of land and buildings in Kuantan for RM155 million, which will be funded by existing and new bank borrowings.

“We are positive on this yield-accretive acquisition with a net yield of 7% vis-à-vis its current yield of circa 5.3%. The property will be fully tenanted under long leasing term. Estimated impact to our earnings is circa +4-5% after financing cost. However, we make no changes to our forecast pending analyst briefing,”HLIB said.

Axis-REIT's net profit for the second quarter ended June 30, fell to RM23.27 million from RM36.45 million a year ago.

This was on only marginally lower revenue of RM41.64 million for the quarter under review, from RM41.78 million a year ago.


Ringgit ends easier on stronger US dollar 

KUALA LUMPUR: The ringgit reversed yesterday's gains to close easier against the US dollar today, dampened by renewed interest for the greenback, dealers said.

At 6pm, the local unit stood at 4.2800/2840 against the greenback compared with Monday's close of 4.2760/2800.

The US dollar regained its momentum following the release of upbeat economic data in the country.

“Investors stayed on the sidelines, awaiting the outcome from the two-day US Federal Open Market Committee meeting which will end on Wednesday. This would determine the direction of the country's economy,” a dealer said. 

Meanwhile, the ringgit was mixed against other major currencies.

It rose against the yen to 3.8399/8446 from 3.8620/8663 on Monday and strengthened versus the British pound to 5.5696/5761 from 5.5750/5815 yesterday.

The local unit, however, fell against the Singapore dollar to 3.1431/1472 from Monday's 3.1413/1459 and depreciated against the euro to 4.9879/9934 from 4.9841/9896 previously. – Bernama


IMF: Cambodian economy to grow 7pc this year and next

PHNOM PENH, July 25 — Cambodia’s economic growth should stay at around 7 per cent this year and the next as public spending and tourism offset a fall in private investment because of election uncertainty, the International Monetary Fund (IMF)…


CCK informs of fire incident at fish ball processing factory

PETALING JAYA: CCK Consolidated Holdings Bhd today reported a fire incident which occurred on yesterday at the fish ball production section of CS Choice factory.

CS Choice is a subsidiary of CCK, engaged in the manufacturing, processing and packing meats and other food products. CCK's share price closed half a sen higher today, to 94 sen on 332,300 shares traded.

It said the fire incident affected a small area, causing damage to the fish ball production line, leading it to temporarily cease production operation for clean-up, repair works and inspection.

The production in CS Choice factory is expected to start in one to two months time. The preliminary estimate of the impact on the earnings of CCK Group is not expected to be material.

It further added that the board is unable to ascertain the cause of the fire or estimate the full impact and consequences of the incident. The incident did not cause any harm to workers.


PM Najib’s keynote address at Invest Malaysia Kuala Lumpur

Bismillahhirahmannirrahim Assalammualaikum Warahmatullahi Wabarakatuh Distinguished guests, Ladies and gentlemen, 1. Seven years ago, in 2010, I introduced our New Economic Model – right here, at Invest Malaysia. This model…