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T7 Global banks on oil & gas, aerospace for growth

KUALA LUMPUR: Diversified group T7 Global Bhd which is looking to complete the construction of its aerospace manufacturing plant next year, will be banking on contracts won under its oil and gas segment as a main income stream for this year.

Shareholders approved the sale of its entire equity interest in 7 New Market Street Holdings Ltd for £5.75million (RM31.45 million) at an EGM today, proceeds of which will be used to fund its projects and undertakings, primarily the aerospace plant.

For the financial year 2016, the products and services segment contributed about 74% of the group’s revenue while the engineering equipment services contributed 26%.

The group which is currently in the oil and gas, property and construction businesses is looking to secure at least one or two projects from its RM3 billion oil and gas tender book.

Earlier this year, the group announced that its subsidiaries Wenmax Sdn Bhd and Tanjung Offshore Services Sdn Bhd have collectively bagged six contracts from Petronas Technical Services Sdn Bhd, Sabah Shell Petroleum Company Ltd and Repsol Oil & Gas Malaysia Ltd for a combined contract value of RM260 million.

T7 Global recently returned to the black in the third quarter ended Sept 30 after recording a net profit of RM2.97 million mainly driven by one-year extension to its construction work request contract from Petronas Carigali Sdn Bhd.

The group’s chairman Datuk Seri Dr Nik Norzul Thani Nik Hassan Thani said T7 Global is anticipating a good year on the back of the projects secured and potential contract wins as well as joint venture partnerships, to maintain its profitability.

The aerospace segment represents the group’s efforts to diversify its revenue stream away from the oil and gas segment.

The plant to manufacture hard metal components of planes is the culmination of its unit T7 Aero Sdn Bhd’s joint venture partnership with UK based KOV Ltd to incorporate T7 Kilgour Sdn Bhd last May.

“We’ve identified a site and we hope to do groundbreaking soon. We have appointed contractors and consultants to look at factory development and are also sending people for training,” Nik Norzul said at a media briefing after the group’s EGM today.

The segment is expected to be the “real impetus” for the group to remain profitable in the future, projected to churn a revenue of RM180 million a year once operating at full capacity.

The plant is expected to run at a capacity of 20-30% in the first year of operation and orders are expected to come in early next year. A capital expenditure of RM50 million is expected to be rolled out over the course of three years for the project.

Nik Norzul noted that one of the constraints is in terms of a skilled workforce as training and expertise is scarce in Malaysia. Hence, T7 Global is investing in technical expertise and its human capital which includes sending staff to the United Kingdom for training.

Its construction unit T7 Kemuncak Sdn Bhd recently formed a joint venture (JV) with China Construction Third Engineering (M) Sdn Bhd (CCTE Malaysia) to tender for mega infrastructure projects, including the Terengganu portion of the East Coast Rail Link (ECRL), Mass Rapid Transit (MRT), Light Rail Transit (LRT) projects and construction business in Malaysia.

The JV entity has also signed a memorandum of understanding with Terengganu state government-linked company Eastern Pacific Industrial Corporation Bhd and CMC Engineering Sdn Bhd to form a consortium to bid for the ECRL project.


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TDM accepts land granted by Terengganu

PETALING JAYA: Terengganu state-owned plantation company TDM Bhd today accepted the plots of land offered by the state of Terengganu via a grant.

In line with TDM’s domestic plantation expansion plan, the company had applied to the state for land in Hutan Simpan Sungai Nipah, Kemaman and Hutan Simpan Rasau, Dungun, measuring 4,515ha.

The state approved TDM’s application for the plots as per the terms and conditions set out in its letters dated Dec 26 and 28, 2017 respectively.

“The lands are alienated to TDM by way of grant from the state to support its operations and expenditures for the financial year 2017,” TDM said in a stock exchange filing.

TDM’s landbank in Terengganu stands at 31,848ha and the acceptance of the plots of land, together with the proposed acquisition of controlling stake in Ladang Rakyat Terengganu Sdn Bhd, which was announced on Feb 27, 2017, will increase TDM’s total land bank in Terengganu to 47,830ha.

TDM closed unchanged at 46 sen with 353,700 shares traded.


Trive Property posts wider loss in Q3

PETALING JAYA: Trive Property Group Bhd's net loss widened to RM2.8 million for the third quarter ended Oct 31, 2017 from RM304,000 a year ago, due to impairment loses from land and building as well as operation losses recorded during the period.

Revenue for the quarter under review fell by 81% to RM57,000 from RM299,000.

Net loss for the cumulative period of nine months stood as RM2.49 million compared with RM1.14 million recorded in the same period last year, while revenue rose 42.2% to RM2.7 million from RM1.9 million.

Barring any unforeseen circumstance, the group is confident of achieving a better financial performance on the back of its diversification into construction and property development through the acquisition of land in Kerteh, Terengganu; collaborations with Hubei Guang Bo New Energy Co Ltd and Fortunate Solar Technology Ltd; as well as turnkey contract awarded by Syarikat Perumahan Negara Bhd.

Its financial position is also expected to improve with the completion of corporate exercises such as debts restructuring plan, private placement, conversion of warrants to shares and the full settlement of bank borrowings.

On Bursa Malaysia today, Trive was unchanged at 4.5 sen with 6.53 million shares changing hands.


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Carimin Petroleum to buy dormant firm for RM1.6m

PETALING JAYA: Carimin Petroleum Bhd’s unit Carimin Engineering Services Sdn Bhd (CES) has proposed to buy 100% equity interest in Fazu Resources (M) Sdn Bhd (Fazu) for RM1.6 million cash.

Fazu, which has rights to a piece of land totalling 21,130 square meters in Kawasan Perindustrian Teluk Kalung, Terengganu, is currently dormant.

In a filing with Bursa Malaysia on Friday, Carimin said the proposed acquisition would enable the group to develop the land and expand its fabricating facilities for its business operations.

Upon completion of the proposed acquisition, Fazu will become a wholly-owned subsidiary of CES and ultimately the group.

It said the purchase consideration was arrived at on a willing buyer-willing seller basis based on the unaudited adjusted net asset of the company as at Oct 31, 2017.

The purchase consideration will be wholly satisfied by cash through internally generated funds, it added.

Carimin slipped 2.82% to 34.5 sen last Friday on some 296,300 shares done.


RM3.2m lawsuit against Eversendai O&G withdrawn

PETALING JAYA: Eversendai Corp Bhd’s subsidiary Eversendai Oil and Gas (M) Sdn Bhd announced that the RM3.20 million lawsuit filed against it by Translift Sdn Bhd has been withdrawn and the two parties have mutually agreed to resort to arbitration instead.

The group’s board of director said in a filing with the stock exchange that, the suit filed in the Shah Alam High Court has been withdrawn by Translift on December 14, which also happened to be the date fixed for case management.

In a previous filing dated November 23, Eversendai Oil and Gas said it had received a writ of summons and statement of claim in relation to various works related to the Terengganu Gas Terminal project’s Package A.

Eversendai's shares fell 2.22% to close at 88 sen with some 1.90 million shares done.


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