Perduren eyes expanding acreage of supply base

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KUALA LUMPUR (May 18): Property developer Perduren (M) Bhd, which is venturing into the oil and gas (O&G) sector as part of its diversification plan to enhance its earnings, is assessing among its many options to venture into the petroleum supply base business, onshore accommodation and real estate to support the energy industry, said its non-independent and non-executive director Datuk Mazlin Md Junid.

He said the current low oil price offers an opportunity for Perduren (fundamental: 0.1; valuation: 1.1) as it is able to provide cheaper solutions of oil production. The supply base is a specialised area for handling supply vessels, equipment and O&G related cargo traffic.

“We will continue to expand our real estate portfolio in O&G. We know that there are limited number of supply base in the country. The role of supply base is really a real estate that provides a place for the supply and services products offshore," he told reporters after the group’s extraordinary general meeting here today.

"The prominent supply base industry is (located) in Kemaman (Terengganu) and Labuan (Sabah). We will study other options in the country,” he said.

Mazlin added that state oil company Petroliam Nasional Bhd is expected to continue its exploration activities, which will see it increasing demand to find additional supply base or expand acreage of supply base simply because the fields are getting further and further away.

As at 2.45pm, Perduren shares were traded unchanged at RM2.03, with 7,000 shares changing hands.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)