New York: 21:28 || London: 00:28 || Mumbai: 05:58 || Singapore: 08:28

Reports Malaysia

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

March 26, 2014, Wednesday, 05:38 GMT | 02:38 EST | 11:08 IST | 13:38 SGT
Contributed by Shares Investment

Petronas’ Move To Deepwaters And Complex Fields Pays Off

- Over the past four years, Petroliam Nasional (Petronas) has embarked on an aggressive exploration and production strategy and this had helped the group unlock new reserves in Malaysia.

- For two years, Petronas has increased domestic production. Amongst the biggest initiatives is the Tapis enhanced oil recovery (EOR) initiative through the collaboration with ExxonMobil Incorporated, which is expected to improve the first recovery factor by between 10 percent and 15 percent to 55 percent.

- Petronas has also awarded four risk service contracts (RSCs) to date and three of which have already commenced production.

Significance: Petronas said it will continue to find innovative ways and encourage the workforce to push boundaries in unlocking resources and more mutually beneficial cooperation and active participation from the industry players as well.

Ranhill In Reverse Takeover Bid For Symphony House

- Ranhill Energy and Resources is heading for a listing on Bursa Malaysia via a reverse takeover of Symphony House after an attempt to float the company in July 2013, during which there had been a disclosure breach relating to the suspension of licences of its affiliate, Perunding Ranhill Worley by Petronas for an indefinite period.

- The previous offer was supposed to raise some RM753 million in proceeds where 70 percent of which was slated to repay borrowings as it had debts of RM1.9 billion and gearing of 1.61 times as at December 2012.

- Given the first setback on its offer, it would be an uphill task to garner sufficient interest for a second offering.

Significance: The reverse takeover provides Ranhill a shortcut and a cheaper option to the equity market, however, it would also mean absorbing Symphony House’s liabilities. The latter had a net loss of RM40.8 million for 4Q13 while cash equivalents were at RM22.8 million.

Boustead Plantations Receives Approval For Main Market Listing

- Boustead Holdings has received approval from the Securities Commission for the listing of Boustead Plantations (BP) on the Main Market of Bursa Malaysia.

- BP is a pure plantation company that had a track record of delivering sustained earnings consistently.

- Upon listing, BP would have a total enlarged and paid-up capital of RM800 million comprising of 1.6 billion shares. The proposed listing would comprise 580 million new shares for retail and institutional investors and an offer for sale of up to 76 million offer shares.

Significance: Boustead Holdings noted that this move will help consolidate all its plantation assets under BP, which is in line with its long-term strategy to unlock the value of its investment and strengthen its prospects in the plantation sector.