Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Friday, 16 May 2014 20:43
KUALA LUMPUR (May 16): Based on news flow and corporate announcements today, the companies that may be in focus on Monday (May 19) could include the following:
MMC Corporation Bhd’s unit, MMC Engineering Services Sdn Bhd, has been named as one firm within a consortium that has been awarded a major EPCC contract by Petronas.
In a press statement, Petronas said its subsidiary Pengerang Power Sdn Bhd has awarded the Engineering, Procurement, Construction and Commissioning Contract (EPCC) to a consortium of Siemens AG, Siemens Malaysia and MMC Engineering for its Pengerang Cogeneration Plant (PCP) project in Johor.
The contract requires the consortium to undertake the design, engineering, procurement, development and commissioning works and warranty for the project.
The plant’s first co-generation unit is expected to be commercially operational by mid-2017.
The PCP is one of the six associated facilities to be developed within Petronas’ Pengerang Integrated Complex (PIC) project in Pengerang.
Once completed, PCP will be able to produce 1,220 MW of power to supply steam of up to 1,480 tonnes per hour to PIC.
TH Heavy Engineering Bhd announced it has received a letter of award from JX Nippon Oil & Gas Exploration (Malaysia) Ltd for the provision of a floating production storage and offloading (FPSO) vessel for the Layang Development Project in Sarawak.
Under the contract, TH Heavy will be responsible for the provision of engineering, procurement, construction, installation and commissioning (EPCIC) and leasing of the Deep Producer 1 FPSO until Nov 17, 2023.
The contract has extension options for the lease of the FPSO facilities of one year, up to a maximum of 10 years from Nov 18, 2023.
The contract is valued at RM1.2 billion (US$372 million) for the primary period, with an additional potential of up to RM1.47 billion (US$457 million) should the "full extension options" be exercised.
“The award is expected to contribute positively towards the earnings and net assets per share of the company for the financial year ending 31 December 2014 and thereafter,” said TH Heavy in its announcement.
FPSO Deep Producer 1 is owned by Floatech (L) Ltd, an 80% subsidiary of TH Heavy engaged in owning and operating the vessel.
Theta Edge Bhd announced that its wholly-owned subsidiary, Konsortium Jaya Sdn Bhd, has accepted a letter of award from Jabatan Akauntan Negara for the development of the Sistem Perakaunan Akruan Kerajaan Negeri (1SPEKS).
Konsortium Jaya will be appointed as a system integrator for the development of the accrual accounting system for state treasuries.
The project is valued at RM22.8 million, and will be for a duration of 36 months, commencing May 1, 2014, until April 30, 2017.
“The project is expected to contribute positively to the future consolidated earnings of the company,” said Theta, an information and communications technology (ICT) service provider.
Taliworks Corp Bhd's net profit fell 32% to RM3.8 million in the first quarter ended March 31, 2014, from RM5.6 million a year earlier. Revenue was, however, higher at RM75.6 million versus RM64.6 million.
Taliworks said revenue rose mainly on higher contribution from its water treatment, supply and distribution business.
Looking ahead, Taliworks said it was mindful of uncertainties in the Selangor water-sector restructuring.
Delloyed Ventures Bhd has received a privatisation offer from major shareholder Chung & Tee Ventures Sdn Bhd. The privatisation will be done via a proposed selective capital reduction and repayment exercise.
The automotive and oil palm plantation-based Delloyd said Chung & Tee, which already owns 34.24% in the firm, intends to privatise the company with the help of persons acting in concert with the acquirer.
Chung & Tee and persons acting in concert own a collective 63.58% in Delloyd.
Under the deal, minority shareholders will receive a capital repayment of RM4.80 a share.
Delloyed said the acquirer plans to privatise the firm after taking into account challenges in the automotive and oil palm plantation segments.
Trading of Delloyd shares was suspended since 2.57pm yesterday (15 May). Prior to the suspension, the stock changed hands at RM4.35.
Delloyd’s share resumes trading on Monday.
Techfast Holdings Bhd has received a take-over offer from major shareholder Wong SK Holdings Sdn Bhd at 26 sen a share.
Techfast, which manufactures computer and telecomunication components, said Wong SK Holdings already owns 22.1 million shares or 14.45% in Techfast.
Datuk Wong Shee Kai is said to be the ultimate offeror for the exercise as he is the controlling shareholder in Wong SK Holdings.
Techfast said the acquirer intends to maintain the listing status of the company.
Wong SK Holdings had emerged as a major shareholder in Techfast on April 30 this year. On that day, it bought 12.3% stake in the latter on the open market.
Techfast’s share price rose 4 sen to 25 sen at market close today.
SMRT Holdings Bhd has been slapped with an unusual market activity (UMA) query by Bursa Malaysia after the significant price increase in the company’s shares today.
SMRT, the seventh top gainer, closed at 65.5 sen after gaining 15 sen or 29.7%. The stock saw trades of some 29.5 million shares.
Its warrant SMRT-WA also soared 14.5 sen or 40.3% to close at 50.5 sen. The eighth top gainer saw trades of some 42.8 million units.
Bursa has ordered the firm to state if there is any corporate development relating to the group’s business and affairs that has not been previously announced.
The stock exchange also questioned if there is any rumour or report concerning the business and affairs of the group that may account for the trading activity.
Wellcall Holdings Bhd's net profit rose 43% to RM7 million in the second quarter ended March 31, 2014, from RM4.9 million a year earlier. Revenue climbed to RM34 million from RM30.6 million.
The industrial-hose manufacturer Wellcall said cumulative first-half net profit rose to RM14.2 million from RM10.1 million a year earlier. Revenue was higher at RM69.3 million versus RM62.3 million.
Wellcall announced that a second interim single-tier dividend of 2.0 sen per share has been declared, to be payable on 26 June 2014.