Monday, November 19th, 2018

 

Wall Street pulled lower by Apple, trade worries

NEW YORK, Nov 19 — Wall Street was lower today as a slide in Apple shares due to demand worries hit the technology sector, while conflicting signals of a potential truce in the China-US trade dispute added to market jitters. Shares of Apple Inc…


Russia’s Gazprom says offshore part of TurkStream is complete

ISTANBUL, Nov 19 — Construction of the offshore part of the TurkStream pipeline that will carry Russian gas across the Black Sea to Turkey has been completed, Russian gas producer Gazprom said today. TurkStream is part of Moscow’s efforts to…


Markets rise despite US-China war of words

LONDON, Nov 19 — Global stocks rose today, despite a war of words between Donald Trump’s vice president Mike Pence and Chinese leader Xi Jinping, dealers said. Europe’s major markets climbed as traders shrugged off Brexit and Italy jitters,…


AirAsia, RHB offer customers free flights under loyalty programme

SEPANG, Nov 19 — RHB Banking Group’s (RHB) customers can accumulate AirAsia Bhd’s loyalty programme AirAsia’s BIG points which can be redeemed for various products, including free flights. For every RM3,000 transaction, RHB’s customers…


UK PM May seeks business support for EU deal as she faces day of reckoning

LONDON, Nov 19 — British Prime Minister Theresa May will seek to win support from business leaders for her contentious draft European Union divorce deal today as dissenting lawmakers in her own party try to trigger a leadership challenge. May has…


Cuscapi to clinch e-govt concessionaire via Litar Pasifika buy for RM16m

PETALING JAYA: Cuscapi Bhd is set to own one of the only two concessionaires that provide electronic government solutions and other related government services in Malaysia through the acquistion of the the entire stake in Litar Pasifika Sdn Bhd for RM16 million.

Litar Pasifika holds a 20% stake in Konsortium Multimedia Swasta Sdn Bhd, a concessionaire for Malaysian E-Government MSC Flagship Application that builds, operates and owns the electronic channel to deliver services from various Government agencies to Malaysian citizens and businesses.

Cuscapi told Bursa Malaysia that it had entered into a share purchase agreement with Litaran Pasifik Sdn Bhd for the acquisition.

Cuscapi said this strategic investment is expected to provide the group an opportunity to participate in the e-government industry and in line with its expansion plans to diversify into future sectors and services, which are complementary to its existing businesses.

“The proposed acquisition also represent an opportunity for Cuscapi to participate in potential growth of a company as it attempts to increase the number of e-government services under the new government.”

Its sole competitor in the e-government concession industry has a market capitalisation exceeding RM5 billion as at August 31, 2018.

The acquisition will be satisfied via a placement fund from the previous placement exercise in respect of the issuance of the shares and warrants as well as working capital.

The exercise is expected to be completed by November 30, 2018.

Cuscapi's share price was down 4.3% to close at 22 sen with 2.59 million shares changing hands.


DNeX Q3 earnings more than halve

PETALING JAYA: Dagang Nexchange Bhd (DNeX) saw its net profit for the third quarter ended Sep 30, 2018 more than halved to RM6.6 million, from RM14.9 million in the previous corresponding quarter due to lower year-on-year profit margin.

This was mainly due to increasing manpower cost and expenses incurred for business development activities and one off goodwill impairment of RM3.6 million, the group said in Bursa Malaysia filing.

Revenue for the quarter however increased by 27.9% to RM63.3 million, compared with RM49.5 million in the same period last year, mainly due to progress billing for the work done on submarine cable installation and repair project in Indonesia, and new recurring incomes from post acquisition results from Genaxis Group.

For the nine months period, its net profit declined 16.4% to RM35.04 million, against RM41.9 million a year ago, while revenue grew 30.3% to RM185.6 million, from RM142.4 million previously.

On prospects, the group said it will continue exploring opportunities that leverage on building blocks of its existing IT and e-services as well as energy businesses, while focusing on the implementation of planned new initiatives.

Barring any unforeseen circumstances, the group expects to deliver positive results for the year 2018.

The group's share price closed unchanged at 37 sen with 1.6 million shares changing hands.


MRCB to introduce shopping mall at Penang Sentral by 2020

BUTTERWORTH, Nov 19 — Malaysian Resources Corp Bhd (MRCB) expects to introduce a retail shopping mall at Penang Sentral, an integrated northern region transportation hub project, by 2020. Chief Operating Officer of MRCB Properties, Shireen Iqbal…


MISC’s Q3 profit halves to RM341m, 7 sen dividend proposed

PETALING JAYA: MISC Bhd’s net profit halved to RM341 million in the third quarter ended September 30, 2018 against RM680.5 million in the previous corresponding period, due to lower contribution from all business segments.

Revenue went down 3.7% to RM2.23 billion from RM2.32 billion.

It has proposed to declare an interim dividend of 7 sen per share for the quarter under review.

MISC told Bursa Malaysia that operating profit for the liquefied natural gas (LNG) was 38.1% lower at RM249.4 million, mainly due to lower earning days and lower charter rate following contract renewal of an LNG carrier in October 2017.

Its petroleum business recorded lower operating loss of RM27.4 million compared with corresponding quarter’s loss of RM59.7 million, mainly due to higher freight rates

For the offshore business, its operating profit skidded 55.3% to RM139.9 million, mainly due to the one-time gain from the variation works awarded to Gumusut-Kakap Semi-Floating Production System (L) Ltd (GKL) and construction profit from FSO Benchamas 2 recorded in the corresponding quarter.

Meanwhile, the heavy engineering segment recorded an operating loss of RM22.8 million, mainly dragged by additional cost provisions made for ongoing projects and additional costs incurred on conversion works and compressed margins for dry docking activities in the current quarter.

MISC’s nine-month net profit slumped 49.2% to RM972.8 million from 1.91 billion, while revenue slipped 15.9% to RM6.39 billion from RM7.6 billion.

Its shares gained 0.2% to close at RM6.60 on 1.91 million shares done.


Malakoff’s unit get termination notice from Algeria water desalination plant offtakers

PETALING JAYA: Malakoff Corp Bhd's (MCB) associate company, Almiyah Attilemcania SPA (AAS), and its subsidiary, Tlemcen Desalination Investment Company SAS (TDIC), on Nov 18, 2018 received a Notice of Termination dated Nov 12, 2018 issued by offtakers, Sonatrach SPA and L'algerienne Des Eaux (ADE), for failure to honour remediation commitments.

Sonatrach and ADE said they were giving eight days prior written notice from the date of receipt of the Notice, for the termination of the Water Purchase Agreement dated Dec 9, 2007 (WPA) on an alleged breach of the WPA due to failure of AAS and TDIC to honour the remediation commitments that were notified by the offtakers.

MCB said TDIC will be seeking legal advice and taking the necessary steps to challenge the purported termination by Sonatrach and ADE in accordance with the WPA.

AAS is a joint stock company incorporated in Algeria for the design, installation and operation of the sea water desalination plant in the district of Tlemcen, Algeria. The shareholders of AAS are TDIC and Algerian Energy Company (AEC), holding 51% and 49% of the shares respectively.

The shareholders of TDIC are Malakoff AlDjzair Desal Sdn Bhd (MADSB) and Menaspring Utility (S) Pte Ltd, holding 70% and 30% of the shares respectively. MADSB is wholly owned by Malakoff International Limited, which in turn is a wholly owned subsidiary of MCB.

MCB Group’s carrying amount of investment in AAS had been fully provided for in year 2016. The purported termination is not expected to have any material effect on the earnings, net assets and gearing of MCB Group for the financial year ending Dec 31, 2018.