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Reports Malaysia

Malaysia stock market and companies daily report (February 26, 2014)

February 26, 2014, Wednesday, 06:38 GMT | 01:38 EST | 11:08 IST | 13:38 SGT
Contributed by Shares Investment

Petronas To Sell 25%-Stake In Canadian Shale Gas Unit

- Petroliam Nasional (Petronas) will sell a 25 percent stake in its Canadian shale gas assets to an Indian company as it looks to share the costs of the project.

- Petronas has already sold 10 percent stake in Progress Energy Resources Corporation, the integrated shale gas development and liquefied natural gas (LNG) project to Japan Petroleum Exploration and another 3 percent to Petroleum Brunei.

- Petronas has been expanding abroad to shore up future earnings. It bought the Canadian unit in 2012 at around US$5 billion (RM16.4 billion) and development of shale gas resources and an LNG facility of 12 million tonnes per year are pegged at US$35 billion.

Significance: Petronas had said previously that it wanted to sell up to 50 percent of the Canadian project, suggesting it has another 12 percent to offload.

CIMB’s FY13 Earnings Jump 4.5%

- CIMB Group Holdings reported a 4.5 percent increase in its earnings to RM4.5 billion on the back of 8.4 percent jump in interest income to RM14.7 billion for the full year ended 31 December 2013.

- CIMB announced a second interim dividend per share of RM0.11, with total dividend for the year amounting to RM0.2382 or RM1.8 billion in total, which translates to a dividend payout ratio of 40 percent of its profit for the year.

- The group’s good performance was despite the challenging environment which saw Rupiah declined 15 percent against the Ringgit and reduced Indonesian income by an average of 8.1 percent.

Significance: CIMB noted that it will be managing its asset quality more closely and following the enlargement of its capital base and uncertain business environment, CIMB has set a 13.5 percent to 14 percent range of return on equity for 2014.

Iris Inks RM793.2m Deal

- Iris Corporation has inked a RM793.2 million contract with the Republic of Guinea government in West Africa. The group will supply and implement secure chip technology solutions in the Republic of Guinea including electronic passports and visa under the 15-year agreement.

- Iris is the preferred trusted identity solutions provider in 26 countries across various continents with thorough experience in ePassports, which is International Civil Aviation Organisation compliant.

- Security and Civil Protection Minister Elhadj Madifing Diane said Iris has delivered a milestone task and hoped that the company could further share their expertise in other sectors for the benefit of the country.

Significance: Iris appears to be on the right path with an advantage over other competitors backed by over 19 years of experience and is the pioneer in the world’s first ePassport for the Malaysian government.