BEIJING: China sees ‘enormous potential’ in Saudi Arabia’s economy and wants more high-tech cooperation, the Chinese government’s top diplomat said, as Saudi Crown Prince Mohammed bin Salman began a two-day trip to Beijing. The Saudi delegation, including top executives from Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledge […]
KUCHING: Malaysia’s automotive industry is off on a positive start this year, led by strong numbers recorded by national carmakers. Analysts expect the industry to continue this strong momentum, underpinned by healthy demand and favourable foreign exchange (forex). According to the research arm of Affin Hwang Investment Bank Bhd (AffinHwang Capital), the automotive industry’s January […]
PETALING JAYA: Chemical Company of Malaysia Bhd’s (CCM) net profit for the fourth quarter ended Dec 31, 2018 jumped more than seven times to RM8.63 million from RM1.19 million a year ago due to savings in finance cost of RM2.6 million pursuant to the group’s de-gearing exercise.
In a filing with Bursa Malaysia, CCM said the preceding year’s profit also included the voluntary separation scheme cost amounting to RM5.5 million. The group had also recorded an income tax expense of RM13.93 million a year ago.
Revenue for the quarter fell 8.03% to RM100.46 million from RM109.23 million a year ago due to lower revenue from the chemicals division, which fell 9.3% due to lower average selling prices of its chlor-alkali products on the back of fluctuation in chemical commodity prices.
For the financial year ended Dec 31, 2018, net profit fell marginally to RM25.71 million from RM25.92 million a year ago while revenue rose 6.81% to RM395.94 million from RM370.71 million a year ago.
The group recommended a final single tier dividend of 2 sen per share for FY18, to be paid on June 14, 2019 subject to shareholders’ approval.
In FY18, the group completed two major divestments of its non-core assets which raised a total proceed of RM249.2 million, that was used to pare down its borrowing and strengthened its gearing position from 1.67 times in 2017 to 0.60 times as at end of 2018.
The continuous de-gearing exercise has also contributed to a reduction in finance cost by 18% compared with 2017. The group expects to pursue its expansion and growth strategies now with a stronger financial position.
In line with its strategic plan, the group will focus its efforts on expanding its two core businesses namely chemicals and polymers divisions, both of which will pursue new opportunities to increase market share.
BEIJING, Feb 22 — State-owned oil company Saudi Aramco signed a US$10 billion deal to build a refining and petrochemical complex in China today, as Saudi Crown Prince Mohammed bin Salman wrapped up a two-day trip to Beijing. The Saudi delegation,…
KUALA LUMPUR, Feb 22 — Mitsubishi Hitachi Power Systems, Ltd (MHPS) secured the 2018 market share leadership in global orders for heavy duty gas turbines (100 MW and above), achieving a major milestone in the global power generation sector. The…
BEIJING, Feb 21 — Saudi Aramco plans to sign preliminary deals to invest in two oil refining and petrochemical complexes in China during the Saudi Arabian crown prince’s visit this week, sources familiar with the plans said, as Beijing seeks…
KUCHING: Schneider Electric, the global leader in energy management and automation, recently hosted its annual APC by Schneider Electric Appreciation Night, an award ceremony to recognise and honour local partners for their commitment and exemplary performance throughout 2018. APC by Schneider Electric presented four award categories to outstanding and dedicated distributors, as well as top […]
PETALING JAYA: Malaysian Rating Corp Bhd (MARC) has affirmed its “AAA” rating on Petronas Dagangan Bhd’s (PDB) Islamic commercial papers (ICP) and Islamic medium-term notes (IMTN) programme of up to RM2 billion, with a stable outlook.
The rating agency said in a statement today that the ratings affirmation reflects PDB’s strong financial metrics, characterised by its sound liquidity and strong leverage position.
PDB’s ratings also incorporate high parental support from Petroliam Nasional Bhd (Petronas) on which MARC maintains a public information rating of “AAA” with a stable outlook.
The stable outlook on the ratings reflects MARC’s expectation that PDB will continue to maintain its current credit profile, it added.
PDB is a leading domestic player of downstream petroleum products, benefitting from an extensive network of more than 1,000 petrol stations across the country, with a strong market position, underpinned by well-established Petronas brand.
Its businesses are divided into four core segments, namely retail (mainly motor gasoline and diesel), commercial (mainly airline fuel), liquefied petroleum gas (LPG) and lubricants.
It retains a healthy market share in the retail and commercial segments, contributing about 50.7% and 49.3% to group revenue of RM22.2 billion for the nine month period of 2018 (9M2018).
The total group revenue rose by 9.4% year-on-year, largely due to higher average selling prices on higher Mean of Platts Singapore (MOPS) prices, the benchmark prices for refined products.
MARC noted that changes in pump prices have had no impact on PDB’s pricing mechanism as it adheres to the automated pricing mechanism under which it is assured of a fixed profit rate that affords earnings stability in the retail segment.
However, MARC said the operating performance of its commercial segment will continue to be susceptible to fluctuations in oil prices and economic cycles.
During 9M2018, PDB incurred higher capex of RM187.3 million, largely due to expenditure for the renovation and upgrading of petrol stations.
The lower cash flow from operations, higher capex and higher dividend payment of RM774.9 million resulted in negative free cash flow of RM484.1 million (9M2017: RM485.5 million).
Nevertheless, MARC noted that PDB has strong liquidity as reflected by cash balances of RM2.9 billion as at end-September 2018.
“The leverage level remained low with a debt-to-equity ratio of 0.01 times. There is currently no outstanding amount under the rated programme,” MARC added.
SAN FRANCISCO/NEW YORK: Lyft Inc will pitch investors on its fast growth in the United States as it seeks to beat out Uber Technologies Inc to become the first publicly listed ride-hailing company, according to people familiar with the matter. Lyft plans to tell investors its US market share is approaching 40 per cent, up […]