The Sun

PRG falls into the red in Q2

PETALING JAYA: PRG Holdings Bhd fell into the red in the second quarter ended June 30, with a net loss of RM1.78 million against a net profit of RM2.77 million a year ago.

Revenue for the period more than halved to RM26.61 million from RM59.96 million last year.

The decrease in both net profit and revenue was due to the decrease in revenue from manufacturing segment as a result of lower sales volume and also strengthening of the ringgit against the US Dollar, which is the major sales denomination currency, as well as decrease in revenue from Picasso Residence development project due to lesser units sold during the financial period.

The group anticipates the prospect of its manufacturing business to continue to be challenging in the near future and foresees challenges from the recent crude oil price surge which will increase the price of certain crude-oil based raw materials, in turn, leaving an impact on the gross profit margin.

It added that any further, significant and abrupt movement in the exchange rate between the ringgit and the Greenback may result in foreign exchange gains or losses which may affect the group’s results as it derives a significant amount of its revenue in US Dollar.

PRG’s board of directors said it will continues to focus on marketing and sale of the Picasso Residence units and is strengthening its presence in the property development market by venturing into affordable housing with strategic partners.

“The group is venturing into healthcare business as part of the Group's vertical integration along the value chain in the wellness segment of the healthcare industry which is thriving and has an opportunity for growth. The investments into healthcare business are expected to diversify the stream of income of the Group and compensate for business cycle fluctuations,” it added.

As for the cumulative period of six months, it reported a net loss of RM972,000 as opposed to a net profit of RM3.90 million.

Revenue declined to RM73.84 million from RM94.50 million.

In a separate filing, PRG said it was providing financial assistance to facilitate the ordinary course of business of its non-wholly owned subsidiary, Premier De Muara Sdn Bhd.

The financial assistance amounting to RM3 million, was in the form of a letter of undertaking to suppliers.


Deleum sees better earnings in Q2

PETALING JAYA: Deleum Bhd’s net profit for the second quarter ended June 30, grew 36.91% to RM9.17 million from RM6.70 million a year ago due to improved trading conditions and foreign exchange gain, partly offset by changes in US Dollars.

Revenue for the period rose 26.15% to RM247.80 million from RM196.42 million on the back of higher revenue contribution from the power and machinery and Integrated corrosion solution segments,even though it saw lower revenue contribution from oilfield services segment.

Deleum declared an interim single tier dividend of one sen per share in respect of the financial year ending Dec 31, 2018.

“The group continues to concentrate on meeting its mission of sustainability and resilience by enhancing capabilities across all business segments and where appropriate in conjunction with synergistic alliances, alongside strong project execution and rigorous budget management,” its board of directors said on the prospects.

With firmer oil prices, and improved trading conditions, the board is quietly confident that the performance of the power and machinery segment in the remainder of the financial year, would match the performance to date.

As for the oilfield segment, it is cautiously optimistic of the outcome of bidding exercises as the segment is currently a leader in the provision of slickline services.

Meanwhile, the Integrated Corrosion Solutions segment which suffered a loss in the year to date, partly due to high start-up and mobilisation costs, is expected to see its costs normalise and revenue to catch-up in the coming months on the basis of work orders in hand. These developments are expected to contribute positively to earnings moving forward

For the period of six months, net profit rose 31.90% to RM10.57 million from RM8.01 million due to stronger performance from both power and machinery and oilfield services segments and favourable foreign exchange movements.

Revenue for the period increased to RM247.80 million from RM196.42 million, supported by the revenue growth recorded across all reportable segments.

The stock remained unchanged at 94 sen with 30,000 shares done.


Police records Finance Minister’s statement on missing GST refunds

KUALA LUMPUR: Finance Minister Lim Guan Eng, who had his statement on the missing RM19.25 billion GST refunds recorded by the police in Parliament on Monday, once again demanded that former Prime Minister Datuk Seri Najib Abdul Razak explain his involvement in the refunds delays.

Lim said in a statement today that the police have recorded his statement under Section 409 of the Penal Code over the missing RM19.25 billion from the GST Refund Trust Account that affected 121,429 companies.

In 2015, the unpaid claims stood at RM610 million or 3% of the total outstanding refunds, while in 2016 it stood at RM2.82 billion or 15% and RM6.78 billion in 2016 or 35%.

The bulk of the outstanding refunds came from this year, whereby the amount stood at a whopping RM9.18 billion or 47% of the total refunds.

Section 409 of the Penal Code states that whoever, being in any manner entrusted with property, or with any dominion over property, in his capacity of a public servant or an agent, commits criminal breach of trust in respect of that property, shall be punished with imprisonment for a term which shall not be less than two years and not more than twenty years and with whipping, and shall also be liable to a fine.

Lim had previously asked if the delay in refunds beyond the stipulated two weeks, which is required by law, was authorised by Najib—and if the former premier had approved the decision by former Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar to not transfer the full amount of RM82.9 billion refunds as requested by the Royal Malaysian Customs Department.

He also asked if Najib had approved that the outstanding GST refunds, not paid back since 2015, be recognised as government revenue instead, and used as the government pleased.

“The answers to these important questions will enlighten the legal role played by Najib as the Finance Minister because only a Finance Minister has the authority to approve or to deny the transfer of RM19.4 billion to the GST Refund Trust Account,”Lim said.


Sime Darby Plantation inks MoU with COFCO Group for palm oil-related ventures

PETALING JAYA: Sime Darby Plantation Bhd is partnering with COFCO Group Co Ltd to collaborate on a number of palm oil-related ventures including the areas of research, sales and marketing palm products in China.

The two companies today inked a memorandum of understanding (MoU), which was witnessed by Prime Minister Tun Mahathir Mohamad who was on a five-day working visit to the Chinese capital.

The MoU includes a joint research on the health benefits of palm oil, developing capabilities to manufacture specialty oils and fats, and establishing joint sales and marketing activities to promote high value differentiated palm products in China.

Through these initiatives, both companies are hoping to create greater demand for certified sustainable palm oil and increase trade volumes between the two companies.

Sime Darby Plantation executive deputy chairman & managing director Tan Sri Mohd Bakke Salleh said in a statement that the group is excited over the prospect of the collaboration with COFCO, a leading agriproduct merchandiser and food production company in China.

This MOU, he said, reflects the group's aspiration to be a leader in promoting the health benefits of palm oil and in producing certified-sustainable, high-value palm oil products for the global market.

“We look forward to seeing the positive results of combining Sime Darby Plantation's research and development capabilities with COFCO's expertise in advanced health-based food research. Under the terms of the memorandum, Sime Darby Plantation and COFCO will conduct further research on the health benefits of products such as palm tocotrienol, red palm olein, and palm kernel oil. In addition, both companies intend to develop specialty products such as premium shortening and bakery fats for the Chinese market, and to explore possibilities to co-manufacture these healthy oils and specialty fats in Malaysia.”

“China is a key market for Malaysian palm oil and Sime Darby Plantation is proud to contribute towards increasing trade volumes and strengthening of relations between Malaysia and China. We view our cooperation with COFCO as a significant milestone in enhancing the commercial relationships of both countries. We would like to applaud the Ministry of Primary Industries for its role in initiating this collaboration and convey our highest appreciation to the government for its continuous support to the Malaysian palm oil industry,” he added.