KUALA LUMPUR (March 11): Based on corporate announcements and news flow today, companies that may be in focus next Monday (March 14) could include the following: Felda Global Ventures (FGV), Hibiscus Petroleum, Chemical Co, Key Alliance Group (KAG), BHS Industries, Compugates, TAS Offshore, Only World Group (OWG), Berjaya Auto (BAuto) and Bumi Armada.
Oil palm plantation operator Felda Global Ventures Holdings Bhd (FGV) said Mohd Emir Mavani Abdullah will continue to serve as its chief executive officer and president, after local media reported he may be replaced next month.
According to The Star newspaper, Emir, who has served as CEO for three years, is expected to be replaced by Zakaria Arshad, the head of the company's downstream operations.
"Regarding the news reported by The Star today, FGV emphasises that Mohd Emir Mavani Abdullah will continue to serve as the president and chief executive officer," FGV said in a statement.
Hibiscus Petroleum Bhd is now the licensed operator for the Anasuria Cluster oil and gas fields, Central North Sea in UK with the completion of its 50% acquisition of Shell UK Ltd, Shell EP Offshore Ventures Ltd and ESSO Exploration and Production UK Ltd interest in the field for US$52.5 million.
In a filing with Bursa Malaysia today, Hibiscus Petroleum said its indirect wholly-owned unit Anasuria Hibiscus UK Ltd is managing the asset with Ping Petroleum Ltd, through a UK incorporated joint-venture — Anasuria Operating Company Ltd (AOC).
AOC is held on a 50:50 ratio, it said in a separate statement, adding Petrofac Facilities Management Ltd has been appointed as duty holder to operate and maintain the Anasuria Floating Production Storage and Offloading (FPSO).
London Stock Exchange-listed Petrofac will also monitor and manage the pipelines and subsea well, with the exception of the well on the Cook field, as part of its five-year contract, Hibiscus said.
Hibiscus Petroleum chairman Zainul Rahim Mohd Zain said the cluster has four producing oil and gas fields, and considerable infrastructure which includes the Anasuria FPSO facility.
“The current production level is over 4,000 barrels/day nett to Hibiscus Petroleum. For Hibiscus Petroleum to be an owner and recognised as a joint operator of an offshore asset in the North Sea, is a landmark moment for our company,” he said.
Chemical Co of Malaysia Bhd's (CCM) 9.34%-owned unit PanGen Biotech Inc was listed on the South Korean bourse today.
CCM told Bursa Malaysia today that PanGen was listed on the Korea Exchange's Korean Securities Dealers Automated Quotations (Kosdaq) board.
CCM said PanGen's listing will not have a material impact on CCM's earnings for current financial year ending Dec 31, 2016.
Telecommunications company, Key Alliance Group Bhd (KAG), replying to an unusual market activity (UMA) query by Bursa Malaysia, said apart from an update on its incubator project with Fatfish Medialab Pte Ltd (FMPL) on Feb 29, it was not aware of any other corporate development, rumour or report concerning its business that could have accounted for the surge in its share prices yesterday.
Its share price had surged by 7.69% yesterday, triggering an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd.
In contrast, the counter tumbled 7.14% or half sen today to close at 6.5 sen, with 1.99 million shares done, for a market capitalisation of RM41.5 million.
The Pahang state government has granted Ultimate Ivory Sdn Bhd, a wholly-owned subsidiary of BHS Industries Bhd, a 26-acre plot of land in Pekan to develop the first phase of the Pekan Green Technology Park.
In a filing with Bursa Malaysia today, BHS Industries said the Pahang state government has approved and granted the piece of land in Kg Paloh Hinai, Lepar in Pekan, to its unit yesterday.
“The manufacturing facilities will include among others, a paper mill factory using a patented technology called preconditioning refiner chemical-recycle bleached mechanised pulp, and is targeted to be completed in the first half of 2017,” the filing read.
BHS Industries said the development of the park forms part of its diversification of business activities to transform and diversify its existing core business to include the manufacturing of renewable pulp products, using empty fruit bunches from palm oil trees.
The company said shareholders had approved its plans for diversification during an extraordinary general meeting held in July last year.
Compugates Holdings Bhd has decided to abort its proposed rights issue with warrants, due to unfavourable market conditions.
In a filing with Bursa Malaysia, M&A Securities Sdn Bhd said on behalf of the company that its board had resolved today, as to not to go ahead with the plan, since the unfavourable market conditions are not conducive for the implementation of the rights issue.
“As a result, the board has also resolved not to proceed with the proposed IASC (International Accounting Standards Committee) and proposed M&A (merger & acquisition) amendments,” it added.
On March 18 last year, Compugates had proposed to undertake a renounceable rights issue of up to 304.9 million redeemable preference shares (RPS), together with up to 304.9 million free detachable warrants, to raise up to RM30.49 million.
This is on the basis of one RPS, together with one warrant, for every seven shares of 10 sen each in CHB.
The company had said the proceeds, to be raised as and when the warrants are exercised, were to be utilised for the working capital requirements of the group.
TAS Offshore Bhd said it has received a notice from QMS1 Offshore Services Ltd to cancel contracts to build two units of anchor handling tug supply (AHTS) vessels.
In a filing with Bursa Malaysia today, TAS said its wholly-owned subsidiary, TA Ventures (L) Ltd, had received a notice of termination from QMS1, purporting to terminate the said shipbuilding contracts.
"TAS' position is that the purported notice of termination is not valid and the company intends to proceed with legal proceedings," it said.
Nevertheless, it warned the purported termination of contracts is expected to have an impact on the company's results for the financial year ending May 31, 2016.
However, it said the extent of the impact cannot be ascertained at this point in time.
The Employees Provident Fund Board has ceased to be a substantial shareholder in Only World Group Holdings Bhd (OWG), after disposing 171,000 shares, reducing its shareholding in the company to 4.96%.
In a filing with Bursa Malaysia today, OWG said EPF ceased to be a substantial shareholder in the company on March 8.
The pension fund has been paring down its stake in the company since Feb 23. On Feb 23, EPF owned 5.51% shares of OWG.
OWG, which was listed on Bursa Malaysia in late 2014 at an issue price of 88 sen, raised close to RM50 million via its initial public offering.
Year-to-date, the stock has risen 217.44%, outperforming the FBM KLCI which has declined 3.67%.
The company clinched the revitalisation of the 65-storey iconic Komtar tower in Penang, a project mooted by the state government in December 2012.
Berjaya Auto Bhd (BAuto) saw its net profit for the third quarter ended Jan 31, 2016 (3QFY16) fall by 11.6% to RM41.13 million or 3.6 sen per share, from RM46.52 million or 4.1 sen per share a year ago, mainly due to margin contraction.
The group declared a third interim dividend of 2.15 sen, with ex-date on March 30.
In its explanatory note to Bursa Malaysia today, BAuto said the slower financial performance was attributable to the drop in profit from local operations, as well as mitigated by improved performance from Philippine operations, higher profit contribution from associated companies, and lower Employees' Share Option Scheme (ESOS) expense.
“Although revenue for Malaysia's operations increased by RM88 million or 27.5%, gross profit margin contraction and higher operating expenses have caused pre-tax profit from local operations to drop by RM15.3 million or 25.8%,” it said.
BAuto further explained its gross profit margin in local operations was impacted by price pressure arising from stiff competition, unfavourable sales mix and higher vehicle cost, as the Japanese yen continued to appreciate against our ringgit.
The group’s total revenue for 3QFY16 rose 34.42% to RM522.58 million, from RM388.76 million in previous corresponding quarter.
Cumulatively, BAuto’s net profit for the nine-month period (9MFY16) declined by 8.59% to RM146.39 million, from RM160.15 million previously; while revenue increased 12.24% to RM1.58 billion, from RM1.41 billion in 9MFY15.
Earnings per share (EPS) thus fell to 12.84 sen per share, from 14.15 sen per share in 9MFY15.
Commenting on the group’s future prospects, BAuto’s management said the remaining quarter of FY16 will be challenging, as the downturn in local and global economies has deteriorated further, since crude oil prices fell to historically-low levels and thus, put further pressure on Malaysia's economy.
“On the brighter side, Philippines' auto sales volume for 2016 is forecasted to grow by 15% to 350,000 units, while the sales volume of Mazda vehicles in Malaysia is expected to continue growing, albeit at a slower pace,” BAuto said.
In view of this and after taking into consideration the challenges mentioned in the above paragraph, the Board expects the Group to perform satisfactorily for the remaining quarter of the financial year.
Nonetheless, the group’s board of directors said it expects BAuto to still be able to perform satisfactorily for the remaining quarter of FY16.
Bumi Armada Bhd has issued a retaliatory termination notice of contract to Australia-based Woodside Energy Julimar Pty Ltd for the charter of the Armada Claire floating production storage and offloading (FPSO) unit.
In a filing with Bursa Malaysia, Bumi Armada said its wholly-owned subsidiary Armada Balnaves Pte Ltd (ABPL) has issued the notice of termination of contract to Woodside today.
Following this, Bumi Armada said ABPL reserves the right to claim damages against Woodside for its breach of the contract.
"Bumi Armada’s and ABPL’s position is that Woodside had, by the issuance of the purported notice of termination dated March 4 and its subsequent conduct, evinced, and continued to evince, an intention to no longer be bound by the terms of the contract.
"This amounted to a repudiation of the contract, which entitled ABPL to terminate the contract," it added.
Last week, Bumi Armada announced that it planned to seek compensation for what it sees as Woodside’s unlawful termination the Armada Claire charter contract. The FPSO has reportedly been operating in the Balnaves Field, off northwestern Australia, since August 2014.
Bumi Armada said the contract’s termination was expected to impact the full year 2016 financial results of the group. It added that the extent of the impact could not be determined at this time, as it would depend on the outcome of its legal action against Woodside.