Tuesday, August 20th, 2019
PETALING JAYA: Pos Malaysia Bhd continued to be in the red for three months ended June 30, 2019 with a net loss of RM15.1 million compared with a net profit of RM4.98 million in the same quarter a year ago, due to lower revenue from postal services and aviation along with increased sales and operating cost of RM7.2 million.
Revenue for the quarter under review contracted 3% to RM572.95 million from RM590.46.
Its financial year end has been changed to Dec 31 from March 31.
Pos Malaysia said in a filing with the stock exchange that its postal services segment reported a 14.2% drop in revenue to RM147.5 million from RM171.9 million, attributed to electronic substitution.
The aviation segment’s revenue dropped RM11.2 million, mainly contributed by lower tonnage of cargo handled.
However, its courier business recorded a 9.7% growth in revenue with RM224.5 million against RM204.5 million in the previous year contributed by the growth in e-commerce sector.
International revenue slipped slightly by RM1.7 million on the back of lower volume in transhipment business, while logistic segment’s revenue increased RM500,000 mainly from haulage business from a new project.
Looking ahead, Pos Malaysia expects its business outlook remains challenging, given the continued contraction in mail volume as people turn to electronic means, while the courier business continues to operate in a competitive environment with price and cost pressures despite the revenue growth from the segment.
“Overall, although the group is cautiously optimistic about some of its businesses, Pos Malaysia’s key revenue generators, namely postal services and courier business, remain challenging due to the issues highlighted earlier.”
“Firm steps are being taken to address these issues but the outcome of these steps will only be evident in the medium term.”
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PETALING JAYA: Guan Chong Bhd is proposing a bonus issue of up to 527.94 million shares on the basis of one bonus share for every one existing share.
It also plans to issue up to 175.98 million free warrants on the basis of one warrant for every three existing shares to raise a minimum of RM262.79 million.
It said the proposed bonus issue of shares provides the shareholders of the company with greater participation in the equity of the company in terms of number of shares held and maintaining their percentage equity interest.
“In addition, the exercise is to reward the shareholders for their continuous support by enabling them to participate in the equity of the company without incurring any cost and will possibly be able to encourage trading liquidity of Guan Chong’s shares on Bursa Securities.”
For the free warrants issue, assuming the full exercise of the warrants at the exercise price of RM1.65 per warrant, Guan Chong is expected to raise up to RM290.37 million.
“The proceeds to be raised by the company, as and when the warrants are exercised, are expected to strengthen the company’s capital base and shareholders’ funds as well as potentially provide funds for the group to finance its working capital without incurring interest cost, as compared to bank borrowings.”
The proposals are not expected to have any material effect on the earnings of the group for the financial year ending Dec 31, 2019, save for the dilution in the earnings per share as a result of the increase in the number of shares in issue, and as and when the warrants are exercised into new shares.
The proposals are expected to be completed in the fourth quarter of 2019.
PETALING JAYA: AWC Bhd has clinched a hospital support services contract worth RM113 million.
The group told Bursa Malaysia that its subsidiary Ambang Wira Sdn Bhd (AWSB) won a tender for hospital support services for the National Cancer Institute from the Ministry of Health.
Under the contract, AWSB will provide all engineering, cleaning, healthcare waste, linen and laundry management services for the National Cancer Institute located in Putrajaya.
The contract is for a period of three years from Sept 1, 2019 till Aug 31, 2022.
“This win further strengthens AWC’s foothold in Putrajaya, with the most recent contract win being Menara PJH which is also located in Putrajaya. Currently the group is contracted for facilities management services at Ministry of Foreign Affairs, Communications and Multimedia Ministry, Rural Development Ministry, Palace of Justice and Galeria PJH which are all in Putrajaya,” said its CEO and president Datuk Ahmad Kabeer.
With this award, the group’s total contract wins now in excess of RM300 million for 2019.
PETALING JAYA: Hibiscus Petroleum Bhd’s wholly owned subsidiary SEA Hibiscus Sdn Bhd has increased its aggregate gross production by 3,200 barrels per day with the completion of St Joseph infill drilling campaign in North Sabah.
According to Hibiscus’ filing with the stock exchange, the campaign saw the completion of three infill oil producers utilising triple splitter wellheads on the St Joseph Jacket‐A platform in the 2011 North Sabah enhanced oil recovery production sharing contract (North Sabah PSC) with minimal modifications to topside facilities.
The group said the project is expected to add life of field gross reserves of 2.77 million stock tank barrels.
SEA Hibiscus CEO Dr Pascal Hos revealed that the aggregate production results of 3,200 barrels per day have exceeded the group’s pre-drill expectations of 2,600 barrels per day.
“Our investment in the seven well drilling campaign is consistent with our objective to enhance production from the North Sabah asset and demonstrates that Malaysia is an integral part of our long‐term business strategy,” he said.
He added that the additional process debottlenecking activities are currently underway to reduce the backpressure on these new infill wells.
“This activity is expected to further improve the stabilised production flowrates of the newly drilled wells,” he said.
On March 31, 2018, the group assumed operatorship of the North Sabah PSC as a 50% joint venture working interest partner with Petronas Carigali Sdn Bhd.
The North Sabah PSC consists of four oil fields, namely St Joseph, South Furious, SF30 and Barton located in offshore Sabah, which collectively produces to the Labuan Crude Oil Terminal.
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PETALING JAYA: Kuantan Flour Mills Bhd (KFM) recorded a net loss of RM511,000 for the third quarter ended June 30, 2019 compared with a net profit of RM33,000 in the same period of last year, attributed to higher raw material and production overhead cost.
However, its revenue rose 31.7% to RM15.13 million from RM11.49 million previously, due to continuous improvement in wheat flour sales.
For the nine-month period, KFM’s net loss narrowed to RM1.73 million from RM2.36 million in the same period a year ago, while revenue jumped 55.7% to RM42.19 million from RM27.09 million.
The group expects upon commissioning the new production line during the financial year, its production efficiency will further improve, thereby enhancing its financial performance.