Perduren Eyes O&G Jobs
Property firm Perduren (M), which is changing its name to Enra Group to reflect its new controlling shareholders, is seeking opportunities to expand into the oil and gas (O&G) related business.
The firm is eyeing the possibility to set up an O&G supply base and housing projects near O&G facilities, while exploring opportunities to venture into the O&G production and maintenance business. The group has yet to identify any potential assets but intends to do so within a year.
The group noted that there was growing demand for new supply bases as O&G production fields were now moving further offshore. Additionally, with the recent downturn in oil prices, valuations of businesses on O&G site are more realistic, according to the company, noting that it has RM166 million in cash for its plans.
Significance: Perduren noted that despite the subdued O&G prices, the O&G sector remains as a backbone to the Malaysian economy and there has not been a reduction in consumption (of O&G). Thus, the group sees potential in the sector as it believes that that there will be a continued growth in the consumption of O&G, and recovery of oil prices.
Pharmaniaga 1Q15 Earnings Jump 21%
For the first quarter ended 31 March 2015, Pharmaniaga reported a 21.3 percent increase in net profit to RM31.8 million, underpinned by higher profit margins from its manufacturing division.
Revenue was up a marginal 0.7 percent to RM471.9 million, attributable to higher sales recorded from its private sector, particularly the group’s Indonesian operations, partially offset by lower demand in its concession segment.
Meanwhile, the group’s plan to penetrate the Middle East and North Africa region appears to have hit a snag, as a proposed 50:50 joint venture with Modern Healthcare Solutions Company for the construction and operation of a pharmaceutical manufacturing plant in Saudi Arabia has lapsed on May 16.
Significance: On its prospects, Pharmaniaga remains positive on its performance for the rest of the year as the healthcare industry continues to experience steady growth, both globally and in the region. An interim dividend of RM0.07 per share has been declared for the quarter, an increase from the RM0.04 in 1Q14.
Teo Seng’s 1Q15 Earnings Surge
Teo Seng Capital’s net profit for 1Q15 ended 31 March 2015 jumped 70.3 percent to RM17.5 million, driven by higher revenue from its poultry farming and investment and trading divisions.
The improved earnings were also due to the higher selling price of eggs, coupled with higher production quantity despite a slight increase in feed price.
Its investment trading division also recorded revenue of RM38.3 million, which was continuously contributed from the sales of animal health products.
Significance: In view of current stable raw material prices, the group is of the opinion that the financial results for the remaining quarters of the year. Separately, the firm has previously announced its plan to expand in Singapore meat processor and wholesaler BH Fresh Food to cater to the growing demand for its product in the country.
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