Thursday 12 June 2015 Harvest, MSM, SONA, TTHeavy

Harvest: Datuk Kenneth Vun has denied holding any shares in Harvest Court.

 

Scomies: Scomi Energy Services Bhd and its Australian partner Octanex Pte Ltd have won their first RSC for the Ophir oilfield. The development first is estimated to cost USD135 million and first oil is expected to be produced in 18 months. It was reported that the Ophir oilfield has an estimated development contract value of USD510 million.

The RSC now makes Scomi Energy an exploration and production services provider in addition to its current core drilling fluid and drilling waste management products.

MSM: It has warned that its profit margin in 2014 will be lower than that in 2013 due to an influx of lower priced foreign sugar into the domestic market and higher sugar prices with the removal of sugar subsidy of 34 sen.

The removal of sugar subsidy has led sugar prices to increase to levels higher than Thailand, prompting Malaysian wholesalers and the industry to import. Also MITI approved permits had given to industries increased from 13 in 2013 to 16 currently (June 2014) of sugar imported to 150000 tones.

Meanwhile Malaysia is giving import permits to industries with zero import duty.

MSM is also looking at new streams on income. It will go downstream into the trading business and involved in the chartering business.

Exports accounted for 21% of the group revenue un 2013.

The group will also be exploring foreign markets via M&As and towards revising its upstream activities.

As at March 2014 it sits on net cash of rm397 million.

On its partnership with Al Khaleej Intl, MSM had applied for a new refinery license in Johor and hopes to sign the JV agreement by July 2014. The refinery is the solely for the export market.

SONA: It will take a USD140 million loan to part fund the planned purchase of a stake in two Thai oil and gas blocks owned by London’s Salamander Energy plc.

SONA agreed to buy 40% of the UK oil explorer’s assets in the Gulf of Thailand for USD280 million. Sona would not need more funds for further development because cash flow from the producing Bualuang oil field is enough to cover capex.

BNP Paribas SA will provide the loan facility.

TTHeavy: It is allocating RM90 million for capex for its yard operations and between US$230 million and US$250 million for its floating production and storage offloading (FPSO) segment.

The group would finance the capex through fund raising in the capital market. It would go through the Islamic instrument first.

The company has an order book of close to RM300 million that would last the group until mid-2015.

The company is currently (June 2014) bidding for six upstream projects worth RM3 billion.

TH Heavy’s unit, THHE Fabricators Sdn Bhd, is one of the few Petronas-licensed major fabricators in Malaysia.