The continuing EPCC activities at Pengerang Deepwater Petroleum Terminal in Pengerang, Johor and other on-going projects coupled with the increased plant maintenance and specialist products & services activities explained the higher revenue for Malaysia operation during the period under review.

Revenue from International operation was also higher against same period last year. This was attributable to the increased fabrication activities in New Zealand, engineering & construction activities in Singapore and strong sales of specialist products & services in Middle East, Africa and Thailand.

With the higher revenue and increased contributions from its joint ventures, the Group’s net profit for the current financial quarter of RM69.1 million and year to date of RM119.4 million rose by 52% and 32% respectively, against same periods last year. The increased contributions from joint ventures was due to an exceptional income of RM16 million for the current quarter.

Prospects

The oil and gas sector in Malaysia is expected to remain a main growth driver for the Malaysian economy contributing some 20% of the nation’s Gross Domestic Product. Out of the total cumulative amount of RM218 billion of announced Economic Transformation Programme projects, approximately RM70 billion (32%) will be invested in Pengerang. All these translate into a robust industry outlook and more upstream and downstream opportunities for oil and gas service providers.

As an integrated technical services provider to the petroleum and petrochemical industry, the Group is poised to benefit from the positive industry outlook as the Group strategically grow the core businesses comprising Upstream Services, Logistics Services – Tank Terminals and Supply Base, Specialist Products and Services, E&C, Fabrication, Plant Services and ePayment Technology and Solutions.

The demand for tank storage facilities is expected to increase while further development of the Pengerang Deepwater Petroleum Terminal will provide increased opportunities for the Group’s E&C Division. The Group will also benefit from long-term recurring income once the terminal’s tank facilities become operational in the first half of 2014. The Group is now working towards securing new potential partners for subsequent phases, which include the development of more petroleum and LNG storage terminals.

The Group will continue investing in upstream ventures and enhancing its capabilities in order to increase its involvement in the development of marginal fields and the rejuvenation and re-development of mature oil fields. BC Petroleum Sdn Bhd (“BCP”), a 32% owned joint venture, is expected to complete the Extended Well Testing (EWT) programme in the first quarter of 2014. The EWT programme is the final operational phase in the pre development programme for the Balai cluster fields. Upon successful completion of the pre-development phase and assessment on the project viability of the field, BCP will progress to the field development planning phase.

Activities for the redevelopment of the Bayan Field by Halliburton Bayan Petroleum Sdn Bhd (“HBP”), a 50% owned joint venture, is progressing well on three fronts, namely the Production Enhancement activities, Oil & Gas Field Development Planning and near field prospect maturation work. These activities are expected to create robust platforms that will generate long-term sustainable income for the Group. 

The Group is enhancing its human capital development to meet the anticipated workload challenges ahead.

Barring unforeseen circumstances, the Group is confident that it will continue to deliver a healthy performance for the financial year ending 30 June 2014.