Thursday 28 Mar 2024
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KUALA LUMPUR (June 25): Shares in gas specialist Milux Corp Bhd continued to climb for a fourth day after the company announced it has teamed up with Petrofac Engineering Services Sdn Bhd to jointly participate in the tendering for a job under Petroliam Nasional Bhd (Petronas).

The stock rose as much as 20 sen or 11.76% to RM1.90 in early trade before paring some gains to settle at RM1.72 at press time.

This was still 1.18% or two sen higher than yesterday’s close, albeit in thin volume of 126,900 units. The company’s market capitalisation stood at RM105.78 million.

Milux shares have risen 34.38% from its closing price of RM1.28 on Monday.

On Monday, Milux said it had entered into a Memorandum of Understanding (MoU) with Petrofac for the job as a comprehensive operations, repairs and maintenance contractor of Regasification Terminal Plant (RGT2) for Petronas.

“The deal would serve as a platform for Milux to tap into the reputation, experiences and standing of Petrofac in its quest to diversify its business to include operations, repairs and maintenance works in the oil and gas (O&G) industry.

“This collaboration, if successful, will provide Milux another income stream which will contribute to the profitability of the company in the future,” the group said in a bourse filing.

Yesterday, Bursa Malaysia Securities Bhd requested additional information pertaining to the MoU.

Bursa had, among others, asked Milux to provide the background of Petrofac, its experience in the O&G industry and whether it has had any dealing with Petronas in the past three years.

In its response, Milux said Petrofac is part of Petrofac Group, which is owned by London Stock Exchange-listed Petrofac Ltd.

Petrofac Group, it said, has a 38-year track record in design, building, management and maintenance of infrastructure for the energy industries in the oil and gas sector.

According to Milux, Petrofac Group operates through multiple Malaysian entities and its current dealings with Petronas include engineering, procurement and construction, specialised wells engineering and other types of engineering services.  

Petrofac is also a registered supplier and vendor of Petronas, the group said.

The project is located in Pengerang, Johor, and Petronas is inviting tenders for a comprehensive operations, repairs and maintenance contractor for the RGT2. The scope details of the contract are still to be shared.

Bursa had also asked whether Milux possessed the necessary experience, expertise and capability to collaborate and participate in the project given that the group is principally involved in the manufacturing of gas appliances, assembly of instant water heaters and gas regulators, and the trading of gas and electrical home appliances.

To this, the group said: “Milux Group, currently, does not possess the necessary experience, expertise and capability in the O&G industry. However, it is in the process of acquiring the expertise through collaboration with another party.”

Milux said it intends to upskill some of its technical staff to become training providers to develop and train more locals to undertake the maintenance jobs, which is highly labour intensive and currently dependent on foreign labour.

It will also engage more personnel with the experience, expertise and capability to provide the training services required under the contract.

“Thus, it has been agreed that Petrofac will take the lead in the execution of operations and maintenance work in the initial period while Milux will be involved in developing more locals to undertake some of the maintenance work,” it added.

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