KUCHING: Automotive is expected by the research arm of Hong Leong Investment Bank Bhd (HLIB Research) to substitute smartphone as the major growth driver for global tech sector. According to HLIB Research, increasingly, new vehicles are embedded with more semiconductors for safety (airbag system), autonomous (park assist system), positioning (GPS navigation), comfort (stability control system), […]
KUCHING: The ways of doing business has evolved with time. Long gone are the days of operating a business purely for the want of generating profits; these days, it is crucial to consider of the impact our businesses have on our enviroment, society and economy as a whole. In the midst of doing business, sustainability […]
KOTA KINABALU: Cement Industries (Sabah) Sdn Bhd (Sabah Cement) has signed a sales and purchase agreement with Ecooils Sdn Bhd for a 10-year supply of ecologically-processed pozzolan for use in Sabah Cement’s products. Sabah Cement chief executive officer, Bahrul Razha Chuprat, said the processed pozzolan material, an oil palm by-product, would enable the company to […]
KUALA LUMPUR: Malaysia, Indonesia and Thailand are ready to join forces and retaliate over the European Union’s (EU) threat to exclude palm oil from its biofuel mix and renewable energy by 2021, which is a discriminatory act and amounts to an attack on the palm oil industry. Such action will affect oil palm smallholders more […]
PETALING JAYA: Construction services firm GDB Holdings Bhd has received approval from Bursa Malaysia Securities Bhd to list on the ACE Market, targeted for the first quarter of 2018.
Established since 2013, GDB has completed construction works for several projects in Kuala Lumpur, namely KL Eco City (Parcel B) and One Central Park. The group is working on several high value projects such as Westside III, Etiqa Office Tower, AIRA Residence and Menara Hap Seng 3.
GDB holds a Grade G7 License from the Construction Industry Development Board of Malaysia, which allows it to tender for projects with unlimited value, as well as Sijil Perolehan Kerja Kerajaan that enables it to participate in tenders for government jobs.
It is involved in the implementation of large-scale construction projects, with strong emphasis on environment, quality, and safety.
It has multiple certifications such as ISO 9001:2015 Quality Management System, ISO 14001:2015 Environmental Management System, and OHSAS 18001:2007 Occupational Health and Safety Management System.
GDB has also obtained the QLASSIC, CONQUAS, BQUAS, SHASSIC, and Green 5-S programme certifications for various projects.
Alliance Investment Bank Bhd is the principal adviser, sponsor, sole underwriter, and placement agent for the initial public offer exercise.
PETALING JAYA: AmInvestment Research, which has maintained its crude oil price forecast at US$55/barrel-US$60/barrel (RM221.10/barrel-RM241.20/barrel) for this year, has a neutral stance on the sector given gloomy offshore development prospects.
The research house explained that the reason for maintaining its crude oil forecast was due to the increased optimism stemming from the post-continuation of Organisation of the Petroleum Exporting Countries (Opec) production quotas, geopolitical concerns in the Middle East amid concerns of a US shale oil resurgence.
“Even with the extension of Opec production quotas until the end of 2018, US crude oil production still remains elevated at the near all-time high of 9.8 million barrels/day. However, this exuberance is dampened by the slight drop of two rigs to 929 rigs for US oil and gas rigs, which is still 2.3x up from the May 2016 low of 404, with the trajectory inching higher as this is less than half of the 2011 peak of 2,026,” the research report read.
“Barring a further deterioration shift in geopolitical tensions, we view the current price dynamics at a precarious position given the persistent supply-demand imbalance,” it added.
The research house said albeit crude oil prices having crossed the US$60/barrel mark, the prospects of the segment remained gloomy given Petronas’ “unchanged view” that crude oil price ought to be “lower for longer”.
Contract awards saw a 15% year-on-year (y-o-y) decline to RM7.6 billion, last year, despite seeing a 20% quarter-on-quarter increase in the fourth quarter of last year to RM1.6 billion.
The increase was mainly from the 2018 Pan-Malaysian Transport Installation/Maintenance, Construction and Modification jobs to Sapura Energy.
“As these Pan Malaysian umbrella scope of works are mainly determined on a call-up basis, we still expect Petronas to maintain a cautious approach to upstream exploration and development expenditures,” the research house noted.
Weak capex roll-outs could also indicate that the worst can stretch for a while for Malaysian operators, which operate wholly offshore, especially those struggling with high gearing such as Bumi Armada, Alam Maritim and UMW Oil & Gas.
“We may upgrade the sector if the visibility improves for a faster pace of upstream capex rollouts, which ultimately hinges on higher crude oil price sustainability,” AmInvestment said.
An upgrade of ratings can be expected should global economy be strong enough to drive oil consumption, geopolitical tensions in the Middle East and West Africa deteriorate and US crude oil production, which is set to exceed the all-time peak of 9.6 million barrels in March 2015, faces growth constraints. On the flip side, a de-rating can be expected in the event of an oil glut.
Continued inventory expansion for US crude, slower-than-expected global economic growth, and non-compliance by Opec members to their agreed quotas, which could lead to aggressive measures to regain market shares are seen as the potential catalyst for a downgrade.
The report also noted that global funds with environmental, social and governance commitments may also avoid oil and gas stocks, following suit the footsteps of Norway-based Norges Bank Investment Management’s recent decision to exclude oil and gas stocks from its US$1 trillion fund.
Its stock picks for the year include companies with stable and recurring earnings such as Dialog Group Bhd and Yinson Holdings Bhd.
“Dialog’s earnings visibility is secured largely by the Pengerang Deepwater Terminal project with its enlarged buffer zone, while Yinson’s Ghana floating production, storage and offloading vessel project will provide the earnings momentum over the next two years,” the research house said.
WASHINGTON, Jan 2 ― The head of a conservative Republican faction in the US Congress, who voted this month for a huge expansion of the national debt to pay for tax cuts, called himself a “fiscal conservative” on Sunday and urged budget…
ZURICH, Dec 30 — Swiss consumer protection organisation SKS has filed a claim on behalf of some 6,000 car owners seeking damages from Volkswagen AG and Swiss car dealer AMAG related to the “Dieselgate” emissions scandal. The claim has been…