KUALA LUMPUR (March 25): Bintai Kinden Corp Bhd has formed a 51:49 joint venture (JV) with Petro Flanges & Fittings Sdn Bhd (PFF) to supply materials and equipment to the local and international oil and gas (O&G) industry, including the Middle East, via the distributorship channel of PFF.

The two companies are setting up the JV, Bintai Energy Sdn Bhd (Bintai Energy), to capitalise on the expected O&G industry recovery as capital investments pick up at home and abroad in response to the global energy and commodities crunch.

In a statement filed with Bursa Malaysia, Bintai Kinden via its wholly-owned unit Kejuruteraan Bintai Kindenko Sdn Bhd (KBK), on Friday (March 25) entered into a special purpose vehicle and shareholder’s agreement (SPV Agreement) with PFF for the strategic collaboration.

Under the SPV Agreement, KBK, which specialises in mechanical and electrical engineering services, shall be responsible to manage Bintai Energy, as well as provide the necessary funding for the venture.

Meanwhile, PFF will be handling the marketing work for Bintai Energy, tapping into its experience in the trading of flanges in oilfield industry plant, ship building and water treatment industries.

According to Bintai Kinden, PFF had a past record in supplying pipes, flanges, fittings, valves and other oil and gas equipment to end clients locally and abroad for an approximate aggregated order book value of more than RM60 million.

Bintai Kinden executive director Azri Azerai said the JV is well-positioned to ride the expected rise in demand for O&G equipment and materials on the back of rising levels of activities to address the gap between supply and demand in the sector.

“The recent energy crunch which arose on the back of the Covid-19 pandemic and the global net-zero carbon transition has shown that O&G remains a critical component of the global energy and manufacturing landscape.

“Bintai Kinden and PFF each bring to the table the experience in their respective operations to tap into the industry upside, and complement the existing earnings growth in the company,” he added.

Bintai Kinden’s shares finished the day at 6.9% or one sen higher at 15.5 sen with 31.1 million shares traded, bringing it a market capitalisation of RM114.35 million.