Asia's First Flat Store Cement Terminal
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Cover Story CMS CEMENT Asia’s first Flat Store Cement Terminal using Innovative Panel Aeration and Pneumatic Conveying Technology CMS Cement Sdn Bhd opened its new cement which can store up to 6,000 tonnes of cement. The terminal in Miri on 21 March 2012. The new cement cement is then transported from the flat store into terminal was built at a cost of RM22 million and one of the two 150 tonne steel hoppers, either for represents a significant investment in upgrading our loading into bulk tankers or for packing into 50kg or cement distribution capabilities statewide. 1 tonne ‘jumbo’ bags for delivery to customers. The distribution of fresh cement to the Miri area Customers are now assured of an efficient supply is made more reliable now because bulk cement of cement through the all-weather loading, manufactured at its Pending plant is now being barging, unloading and packing facilities which transported, using a fully enclosed dust free together reduce the risk of weather induced supply pneumatic pipeline, onto one of two dedicated disruptions. purpose-built 7,000-tonne DWT barges and barged to Miri. Cement quality and freshness is preserved by the European-made aeration panel and fluidised transfer The two barges were built by and are operated for technology used in the barges and in the flat store CMS Cement by Shin Yang Shipping. Each barge hall and by the system’s first in first out cement re- is equipped with a Swedish-made fully enclosed claiming system. Air pollution is also reduced, thus dust free pneumatic self-loading and unloading helping preserve our environment, by the use of fully system and has a fully enclosed cargo hold fitted enclosed pneumatic conveying and storing systems with aeration panels and a fluidised cement transfer which extend from the time of manufacture through system. to delivery to the customer. Upon arrival at CMS Cement’s dedicated berth A similar cement terminal will be officially opened in at Miri, the cement is self unloaded via a sealed Sibu on 23 May 2012. pneumatic pipeline into the new flat store terminal 2 OurCMS | Jan-Apr 2012 Exhibition Advantages of CMS Cement’s new marine flat store cement terminal & pneumatic cement conveying facilities: P More customers statewide now have the option to purchase bulk cement with 2 new terminals at Sibu and Miri in addition to the 2 existing ones at Kuching and Bintulu P Shortened bulk cement delivery times due to the 2 new terminals in Sibu and Miri P Fresher cement supply now for Sibu and Miri markets P All weather loading, unloading and packing facilities reduce the risk of weather induced supply disruptions P Kuching plant can now export bulk as well as bagged cement to regional destinations. P Bulk cement imports, in the event of an emergency, can now be unloaded at the Kuching plant. P More reliable statewide bulk and bagged cement supply due to there now being 4 statewide cement storage and supply terminals supported by 2 dedicated bulk cement delivery barges P More environmentally friendly due to the introduction of modern fully enclosed and dust free loading, barging, unloading and storage systems. OurCMS | Jan-Apr 2012 3 Financial FINANCIAL PERFORMANCE FOR THE YEAR 31 DECEMBER 2011 FINANCIAL PERFORMANCE FOR THE YEAR 31 DECEMBER 2011 Year ended Year ended At a Glance 31.12.2011 31.12.2010 (Audited) (Audited) Revenue (RM'000) 1,012,609 943,476 Gross profit (RM'000) 259,366 210,719 Share of associates' results (RM'000) 12,250 6,233 Profit before taxation (PBT) (RM'000) 178,715 118,796 PATMI (RM'000) 120,021 65,781 Gross profit margin 25.61% 22.33% PBT margin 17.65% 12.59% PATMI margin 11.85% 6.97% Basic earnings per share (sen) 36.43 19.97 Return on equity 8.80% 5.08% CMSB Group’s revenue for the year ended 31 December 2011 increased by 7% to CMSB Group’sRM1.012 revenue billion for fromthe RM943.48The Constructionmillion in 2010. & Road The increase wasended mainly 31 December contributed 2011. by theThe year endedConstruction 31 December & 2011Road MaintenanceMaintenance Division Division from registered its acquisition Group’s of CMS associate Roads Sdn in investmentBhd and increased byCMS 7% Pavement to RM1.012 Tech Sdna Bhd jump on in 1 the March profit 2011. primarily banking, K&N Kenanga reported billion from RM943.48 million in due to the re-acquisition of the a profit compared to a loss in the 2010. The Theincrease Group was rec mainlyorded a pretwo-tax profit-making profit of RM178 entities.72 millionwhich forprevious the year year. ended December contributed2011, by the compared Construction to a & pre -contributedtax profit of significantly RM118.80 millionin the for the year ended 31 December Road Maintenance2010. Division from current financial year. Performance for 4Q 2011 its acquisition of CMS Roads Sdn Bhd and CMSReview Pavement of Performance Tech The Construction Materials The Group’s revenue for the Sdn Bhd on 1 March 2011. Division’s profit fell primarily due fourth quarter of RM287.18 million The Group’s earnings continuedto the slower to be mainlygovernment driven fund by the Manufacturingwas significantly Division higher followed by 19% The Groupby recorded the Cons a pre-taxtruction & Roadallocation Maintenance resulting and in the delayConstruction in over Materials the preceding Divisions quarter.. The profit of RM178.72 million for projects and higher prices of increase was contributed by all the year endedThe ManufacturingDecember 2011, Division bitumencomprising and diesel. cement, clinker, concretethe productsDivisions. and wires, being compared theto a key pre-tax driver profit and ofthe largest contributor to the Group’s profitability, continued to achieve RM118.80 highermillion profitfor the due year to higher Thesales Property volume Development and an upward revisionHowever, of price. the Group’s pre-tax ended 31 December 2010. Division continued to maintain profit for the fourth quarter of The Construction & Roada Maintenancesmall profit from Division an on-going registered aRM38.84 jump in millionthe profit was primarilylower than Review of becausePerformance of the re-acquisitiondevelopment of the two project profit-making and sales entities of whichthe profit contributed of RM52.74 significantly million in the current financial year.shophouses. reported in the preceding quarter. The Group’s earnings The decrease was mainly due to continued Theto be Construction mainly driven Materials Losses Division’s in the profit other fell divisions primarily due tothe the write slower off ofgovernment expenses relatingfund by the Manufacturingallocation resulting Division in delayfor in the projects current and financial higher pricesyear of bitumento project and diesel.under study totalling followed by the Construction declined due to the discontinued RM21.89 million in the fourth & Road MaintenanceThe Property and Development the operations Division ofcontinued the loss-making to maintain a smallquarter. profit from an on-going Constructiondevelopment Materials Divisions. project and salesIT companies of shophouses. at the end of 2010 notwithstanding the profit Other than the loss reported by The ManufacturingLosses in Division the other divisionsregistered for the bycurrent a new financial subsidiary year declinedthe education due to the company, discontinued all other comprisingoperations cement, clinker, of the loss-makingnamely IT Samalajucompanies Property at the end of 2010divisions notwithstanding reported higher the profitprofits concrete productsregistered and by wires, a new subsidiaryDevelopment namely Samalaju Sdn Bhd. Property Developmentexcept for Sdn the ManufacturingBhd. being the key driver and the Division. This was due to its plant largest contributorThe Group’s to the associate Group’s in Thethe Group’ssteel fabrication associate andin the manufacturing steel shut down of steel for maintenancepipes industry in, the profitability,KKB continued Engineering to achieve Bhd continued fabrication its excellent and manufacturing performance for thefourth year quarter. ended 31 December higher profit2011. due Ttohe higher Group’s sales associateof steel in pipes investment industry, banking, KKB K&N Kenanga reported a profit volume andcompared an upward to revisiona loss in of the previousEngineering year. Bhd continued its price. excellent performance for the year Page 1 4 OurCMS | Jan-Apr 2012 Corporate CMS WORKS SIGNS CONSORTIUM AGREEMENT WITH CMEC CMS Works signed a Consortium Agreement with China Machinery Engineering Corporation (CMEC) on 17 January 2012 for the proposed Balingian Power Plant Project. The six member team from CMEC was led by its Vice President, Mr Jin Chunsheng was later presented with a ‘Dewan Undangan Sarawak’ book by Dato’ Richard Curtis. OM Materials (Sarawak) signs PPA with Sarawak Energy Sarawak Energy Bhd (SEB) signed a Power Purchase Agreement (PPA) with Singapore-based OM Materials (Sarawak) Sdn Bhd (OM) on 2 February 2012. Under the agreement, SEB will provide 500 MW of power for a contract period of 20 years to OM. OM is a joint venture company in which CMS and OMH holds 20% and 80% equity respectively and involves a USD500mil investment into a manganese and ferro silicon smelting plant to be built at Samalaju Industrial Park. The signing ceremony was witnessed by YAB Pehin Sri Abdul Taib Mahmud, Australia’s High Commissioner to Malaysia, H.E. Miles Kupa and the Singapore High Commissioner, H.E. Ong Keng Yong. Earthworks for the plant started in early 2011 and the plant is expected to be fully operational by June 30, 2015. It will start receiving an initial power of 30MW after July 31, 2013. It is expected to produce 300,000 tonnes of manganese alloy and 300,000 tonnes of ferro silicon annually and is likely to create between 2,500 - 3,000 new jobs. OurCMS | Jan-Apr 2012 5 BRIEFING ON SCORE DEVELOPMENT IN SARAWAK 2 February 2012, Thursday, Kuching – Group MD, Dato’ Richard Curtis led a group of visitors from Australia - Jamie from Australia Financial Review and David Brook, Professional Public Relations Pty Ltd, Australia to meet RECODA’s CEO, Datuk Amar Wilson Baya Dandot who briefed on the development of SCORE in Sarawak.