O&G Player Dialog to Raise RM2.7B for Pengerang Extension
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MOnday, APRil 6, 2015 ALL BUSINESS DAILY 6 CORPORATE MALAYSIA A uniform O&G player Dialog to raise standard vital for RM2.7b for Pengerang extension halal market Company plans to Phase 2 is completed — and “We try to split our invest- times, by 2019, the year Petro- A UNIFORM halal standard boost oil storage cater to fast increasing activity ments into three, one third into nas’ Integrated Refinery and is vital to cater to the in- in the storage sector. the upstream, a third to the Petrochemical Complex is creased number of partici- capacity at the Johor- “Traders want to store the oil midstream, and the rest to expected to begin operations. pants in the industry, includ- based deepwater and wait for prices to rebound, downstream. Dialog will spend RM1.89 ing those from non-Muslim so demand for our business will “This way, even though the billion for the storage exten- countries. terminal grow. In that sense, the drop is prices are down, we are able to sion and RM749 million for the Initially, halal was related good for us,” said Dialog execu- produce results in the mid- regasification facility. Both pro- only to food free from pork by ALEXANDER WINIFRED tive chairman Tan Sri Dr Ngau stream and downstream divi- jects have a combined value of and alcohol. Today, the word Boon Keat (picture) said last Fri- sions,” said Ngau after Dialog RM9 billion. halal has an extensive mean- INTEGRATED oil and gas day in Petaling Jaya, Selangor. shareholders voted to approve Partner Vopak will also ing and standard. Speaking to (O&G) player Dialog Group Pengerang’s facilities are cur- the fund-raising exercise. spend RM1.89 billion for its 25% Bernama on the sidelines of Bhd is putting RM2.65 bil- rently enjoying a 90% take-up Expansion plans include the stake in the second phase. The the recently ended Malaysia lion into an extension of its rate, said Ngau. Pengerang LNG Project, which bulk of the cost will be covered International Halal Showcase Pengerang deepwater terminal, It costs around US$1.5 mil- will operate a regasification by national oil company Petro- 2015 (Mihas), Shapers Ma- aiming to cash in on the crude lion (RM5.4 million) to hire Pic by Ismail Che Rus unit and store 200,000 cu m of liam Nasional Bhd’s (Petronas) laysia Sdn Bhd Conference oil price slump and attract cus- a vessel for a month, and large pendent tank storage provider, liquefied natural gas (LNG) subsidiaries. Director, Abdalhamid David tomers looking to store oil oil companies like Koch In- and analysts say 20% to 30% of through two tanks with a send- Petronas Refinery and Petro- Evans said the halal ecosys- for trading purposes. dustries, Shell and Vitol have Vopak’s asset capacity is allo- out capacity of 490 million cu ft chemical Corp Sdn Bhd will tem under Islamic economy Dialog’s immediate plans for booked tankers that are able to cated for short-term usage to of natural gas per day. own 40% of Pengerang Phase 2 has moved from just food to the Johor-based terminal, the store crude for a year. cater to spot storage demand. To produce the funds, the through a subsidiary, and Pet- finance, travel, cosmetics and deepest of its kind in South-East Rotteram-based Vopak owns Due to the slump in prices, group will use a combination of ronas Gas Bhd will control 65% personal care. Asia, will see Pengerang’s cur- 89 terminals around the world Ngau predicts midstream and internally generated funds, of the regassification facility. “We are now moving into en- rent storage capacity of 2.3 mil- and has a total capacity of more downstream divisions will con- warrant conversion and bank Ngau said the terminal is still tertainment, digital economy lion cu m almost double to 4.2 than 195 million barrels. tribute 80% of Dialog’s revenue borrowings, a move that will working to establish its re- and modest fashion, creating million cu m after Pengerang It is the world’s largest inde- this year. increase its gearing ratio to 0.6 putation as a five-star facility. an US$8 trillion (RM28.96 tril- lion) market value,” he said. Realising this, Abdalhamid has called on Muslim leaders to identify solutions in every Bursa Malaysia going through sluggish 1Q mechanism in halal develop- ment and certification, and by FUNDSUPERMART for Malaysian equities in 2015. ings in the equity market since MARKET INDEX 1Q15 RETURN start engaging with people RESEARCH The 2015’s earnings down- the start of the year, with the around the world. He said this grade was mainly due to mate- cumulative net foreign outflow Russia RTSI$ 18% is necessary to avoid con- THE Malaysian equity market rial and energy sectors, with amounting to RM4 billion as of Japan Nikkei 225 16.1% fusion in the industry as there as represented by the Kuala their earnings revising down- end-March 2015 as compared are different schools of Islamic Lumpur Composite Index ward by 14.3% and 13.1% to RM6.93 billion last year. China HSML 100 13.2% thought. — Bernama (KLCI) remained sluggish over respectively. Moving forward, the Malay- Shanghai A SSE50 Index 13% the first-quarter (1Q), deliver- Investors remained specula- sian economy is likely to face Korea Kospi 11.7% ing a return of 3.9%. tive of the economic develop- challenging times in the near Despite posting a positive ment in Malaysia owing to the term with the kick-start of the Hong Kong HIS 11.6% High impact gain, Bursa Malaysia was lag- concerns about the financial Goods and Services Tax as con- Asia ex-Japan MSCI Asia ex-Japan 10.7% ging behind other markets position of 1Malaysia Develop- cerns remain about 1MDB and projects to under our coverage. ment Bhd (1MDB), a strategic the weak crude oil prices. Taiwan TWSE 10.3% Disappointing 4Q of 2014 development company wholly The Malaysian economy is India BSE Sensex 9.2% transform earning season which was owned by the government. expected to enjoy growth over Europe Stoxx 600 8.8% released by end of 1Q weighed Its hefty debt burden contin- the long term, underpinned by on the performance of the ues to be a source of uncer- growth in non-oil exports Tech Nasdaq 100 8.2% Perlis equity market. tainty and a contingent liabil- (benefitting from a weakening Emerging Markets MSCI Emerging Markets 7.8% Reported earnings for ity to the nation due to the currency in the near term) as MINISTER in the Prime World MSCI AC World 7.8% energy and material sectors nature of the company’s opera- well as the government infra- Minister’s Department Da- came in significantly below tions and leadership, as well as structure projects. Thailand SET 7.6% tuk Seri Abdul Wahid Omar consensus forecasts on the the RM5.8 billion explicit sov- As of end-March 2015, the Australia S&P/ASX200 7.5% expressed confidence the back of low oil prices resulting ereign guarantees on the enti- KLCI was trading at estimated high impact projects planned in investors selling counters ty’s outstanding debt of RM42 price earning (PE) multiple of US S&P 500 6.3% by the Perlis government within these respective sectors. billion. 15.4 times and 14.3 times for Indonesia JCI 6.2% would contribute to the state‘s Overall, earnings estimates This has caused investors to 2016 and 2017 respectively, as Singapore FTSE STI 4.6% development. for the KLCI on aggregate have stay on the sidelines over the compared to its estimated fair He said talks with the state been downgraded by 2.8% quarter. Reports from MIDF PE of 16 times. Malaysia FBM KLCI 3.9% government and evaluation since the beginning of the year, Reasearch Sdn Bhd showed This represents an annual- Brazil Bovespa -10.4% of the planned projects are implying analysts are expect- that foreign investors have ised expected return of 7.5% ongoing. Source: Bloomberg, iFAST compilations as of end-March 2015. Monthly returns are in ringgit term, ing lower corporate earnings been downsizing their hold- based on end-2017 earnings. excluding dividends. “The process of discus- sion for these projects is po- sitive, however, the federal government will take into Iskandar Waterfront City to sell off assets for RM2.4b account the projects will be implemented with a limited budget,” he told a press con- by MOKHRIZ MOKHTAR The disposal is part of the their relationship as share- Greenland Malaysia Real mation works, payment of ference after attending the joint venture agreement bet- holders of Greenland Tebrau Estate Operator Sdn Bhd. bank borrowings, working 1Malaysia Training Scheme ISKANDAR Waterfront City ween IWC and Shanghai state- Sdn Bhd, which acts as a spe- IWC said it will post a pre- capital as well as land-related and the skills exploration Bhd’s (IWC) wholly owned owned company Greenland cial-purpose vehicle (SPV), to tax and net gain of RM1.6 bil- expenses of IWC. programme. subsidiary Tebrau Bay Sdn Group to develop Tebrau Bay acquire a property for a mixed lion and RM1.2 billion respec- After the completion of The closing ceremony of Bhd has entered into a condi- Waterfront City, a project that development project. tively from the disposal. the disposal, IWC is expect- the programme was offici- tional sale and purchase will include a snow world Based on its initial develop- “Upon completion of the ed to see its net asset per ated by Perlis Mentri Besar agreement to sell off its three theme park, an opera house, a ment planning, the mixed proposed land disposal, it is share increase to RM2.65 from Datuk Seri Azlan Man in pieces of land to Greenland hospital specialising in Chi- development project is ex- expected that the IWC group 81 sen recorded as at Dec 31, Kangar yesterday.