Friday 29 Mar 2024
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KUALA LUMPUR (May 26): Chemical Company of Malaysia Bhd (CCM), which has endured two consecutive fiscal years of losses, said it could turn profitable after disposing of two fertiliser facilities at Bintulu, Sarawak, and Lahad Datu, Sabah.

At a media briefing after the group's annual general meeting today, its chief executive officer Leonard Ariff Abdul Shatar said CCM has begun negotiation with several bidders to take over the said assets.

"Both of these assets is burning us about RM2 million (of losses) a month, that is RM6 million a quarter. We want to dispose of them as soon as we get the price right," he said.

CCM's first quarter ended March 31, 2016 (1QFY16) was in the red, with a net loss of RM250,000 against a net profit of RM3.95 million; revenue was down 7.08% to RM151.53 million from RM163.08 million.

But stripping off the fertiliser business, Leonard Ariff said all its other business segments are profitable.

"Our group will be smaller after we completely dispose of the fertiliser business, but with robust businesses like the pharmaceutical and chemical division," he said.

Leonard Ariff said there is much upside to the group's pharmaceutical business moving forward, particularly from the government segment.

He said half of CCM's pharmaceutical products are presently sold to the government, with the other half to the private sector.

"That was when the government recalibrated their budget 2016, with an assumption that oil prices hover around US$30 (RM122), but now it is around US$50," he said, adding that consumer demand may improve in the subsequent quarters.

CCM shares closed two sen or 2.17% lower at 90 sen today.

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