On Sept 13, steel cookware maker Ni Hsin Resources Bhd said it had entered into a heads of agreement with Satumarin Sdn Bhd to start discussions on its proposed participation in the latter’s business and growth. Satumarin provides offshore marine services, logistics support, project management and marine technical consultancy services to the O&G industry.
According to a filing with Bursa Malaysia, Satumarin is wholly owned by its founder Mohd Zailani Abdul Razak. A check with the Companies Commission of Malaysia (SSM) shows that it slipped into the red in the financial year ended Dec 31, 2017 (FY2017), posting a net loss of RM9,696 compared with a net profit of RM2,247 in FY2016. Its revenue was up 49.4% year on year to RM3.59 million.
Satumarin had total assets of RM1.59 million and total liabilities of RM101,934 as at June 30, 2018. It has yet to file its financial statements for FY2018 with SSM.
Five years ago, in November 2014, Ni Hsin said it was talking to potential O&G partners and that a deal could be announced within a year. Talk of its plans had earlier caused its share price to spike. However, nothing came of it.
While it is just a heads of agreement, Ni Hsin’s board must study the proposal carefully as the O&G sector remains challenging, even for existing players.
Ni Hsin is also not doing well. Its net loss doubled to RM5.98 million in the first half ended June 30, 2019, from a year ago on lower sales.
So, is its O&G ambition for real this time?