04/02/2025

BIZ & FINANCE TUESDAY | FEB 4, 2025

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Malaysian Paper

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SD Guthrie International deepens presence in Europe

MIDF, CIMB positive on O&G sector

KUALA LUMPUR: Malaysia’s upstream oil and gas (O&G) sector is expected to sustain a strong supply, with exploration and production (E&P) and development activities staying robust in 2025, according to MIDF Amanah Investment Bank Bhd (MIDF). In a research note, the investment bank said the upstream will also maintain its efforts in reducing carbon emissions via advanced technology and strategic partnerships. It said Petroliam Nasional Bhd (Petronas) will focus on accelerating exploration in new and mature areas while fast-tracking appraisal programmes to replenish resources and sustain production. “The upstream division is expected to expand its resources to meet these production targets while managing cost effectively with lowered emissions. “Sixty nine development wells are expected to commence by 2025, signalling the start of the development phase and an eventual slowdown in E&P,” it said. The division would continue its venture in carbon capture and storage (CCS) as part of its energy transition and decarbonisation agenda, ultimately positioning Malaysia as a regional hub for CCS solutions, it added. MIDF stated that over the next three years, more than 400 wells are anticipated to be drilled, 39 upstream projects executed, 153 wells abandoned, and 38 facilities decom missioned. Additionally, it said the O&G services and equipment (OGSE) sector would play a crucial role in ensuring sustained competitiveness and project deliveries while encouraging collaboration with other stakeholders in the upstream division. “We maintain our optimism on the sector, despite the possibility of volatile crude oil prices given the external geopolitical in fluences and the expected increased productions in North America and the Middle East. “We believe that Malaysia’s OGSE companies would continue to benefit from Petronas’s priorities in the upstream and decarbonisation solutions, with a high emphasis on E&P, development and CCS,” it said. Meanwhile, CIMB Securities Sdn Bhd echoed MIDF Amanah IB’s view, maintaining its “overweight” stance on the O&G sector while anticipating a strong earnings momentum in 2025, fuelled by robust domestic upstream activity. “The tight market supply also presents opportunities for new floating production storage and offloading and offshore supply vessel builds in 2025,” it said in a separate note. – Bernama Steel Hawk secures extension to contract PETALING JAYA: Steel Hawk Engineering Sdn Bhd, a wholly owned subsidiary of Steel Hawk Bhd, has secured a contract extension for the provision of onshore facilities maintenance, construction and modification services from Petronas Carigali Sdn Bhd. In a statement, Sea Hawk’s board of directors said the contract will not have any effect on the share capital and shareholding structure of the company. The contract is not expected to have any material effect on the net assets of Steel Hawk and its subsidiaries for the financial year ending Dec 31, 2025. The contract is expected to contribute positively to the earnings of Steel Hawk Group for the financial year, it said.

o Malaysian company acquires 48% equity interest in Dutch oils and fats player Marvesa Supply Chain Service

PETALING JAYA: SD Guthrie International Ltd (SDGI), formerly known as Sime Darby Oils International Ltd, has acquired 48% equity interest in Netherlands-based Marvesa Supply Chain Services BV. The €54 million (RM250 million) acquisition enhances SDGI’s capabilities in supplying oils and fats to European animal feed and biofuel industries. The 48% stake was purchased from Parcom, a Dutch private equity firm. The remaining 52% stake is held by BGR Beheer BV, which is owned by the current executive management of Marvesa. SDGI is a wholly owned subsidiary and the downstream arm of SD Guthrie Bhd, formerly known as Sime Darby Plantation Bhd. SD Guthrie is one of the world’s largest producers of Certified Sustainable Palm Oil (CSPO), producing about 12% of all CSPO in the world. It is a fully integrated player in the global palm oil value chain with business presence in 12 countries. Marvesa is a well established name in the

European market, specialising in the sourcing, blending and distribution of oils and fats to the animal feed and biofuel industries. Its diverse customer base, comprising traders, distri butors and multinational feed producers, makes it a key partner in the region. The acquisition of Marvesa strengthens SDGI’s presence in Europe, where it serves customers in 11 countries from its Zwijndrecht refinery in the Netherlands, which has a capacity of 300,000 tonnes annually. The refinery produces a variety of oils and fats that are essential for applications such as industrial frying, emulsifiers, bakery and confectionery ingredients, margarine, dairy products, candles and milk substitutes. “This acquisition positions us for long-term success across emerging markets,” said SDGI CEO Dr Shariman Alwani. “To stay ahead of market demands and regulatory changes, it is crucial that we work together with strong, like minded partners. Our position in Europe is now stronger and we will be able to build more

robust relationships.” The collaboration between SDGI and Marvesa creates powerful synergies. Marvesa’s established trading volumes in lecithin, soy and other soft oils align with SDGI’s diversification strategy into non-palm sectors. This allows both companies to penetrate high-growth opportunities, including in North and Central Asia-Pacific, Middle East and Africa, and the Americas. Marvesa already has a presence in Indonesia and is well positioned for growth in Southeast Asia, which is experiencing high demand for animal feed ingredients. “As shareholders in Marvesa, we are deeply invested in its growth and long-term success. This partnership with SDGI is a testament to the strength of our business and our shared vision for sustainable value creation. Together, we are well positioned to drive growth and deliver exceptional value to our customers across Europe and beyond.” said Marvesa CEO Bart de Bruycker.

A Falcon 2000 undergoing heavy maintenance at ExecuJet MRO Services Malaysia.

CAAC certifies ExecuJet MRO Services Malaysia for Falcon aircraft PETALING JAYA: The Civil Aviation

proximity to Malaysia, means it is an ideal market for us to target,” said ExecuJet MRO Services regional vice-president Asia, Ivan Lim. He added that they are seeing an increasing number of Chinese-registered business jets flying to Malaysia and other parts of Southeast Asia due to the growing economic ties between China and Asean. “We are a factory-owned Falcon service centre and with a world-class facility supplemented by a workforce that includes some fluent Mandarin speakers, so we are ideally positioned to serve these Chinese operators,” Lim said.

MRO Services Malaysia has been approved to maintain China-registered Falcon aircraft. The CAAC also renewed ExecuJet MRO Services Malaysia’s certification as an approved maintenance organisation for Bombardier and Gulfstream aircraft. In 2019, the CAAC approved ExecuJet to provide line and heavy maintenance on Gulfstream GIV aircraft and variants of the Bombardier Challenger and Bombardier Globe Express series aircraft. China is by far the largest market for business aviation in Asia-Pacific with nearly 300 aircraft. “The fact China is such a big market for business aviation and one that is in close

Administration of China (CAAC) has approved ExecuJet MRO Services Malaysia (ExecuJet MRO Malaysia), a wholly owned subsidiary of France’s Dassault Aviation, to do line and base maintenance on China-registered Falcon 7X and Falcon 2000EX EASy aircraft. The certification approves ExecuJet Malaysia to do base maintenance checks up to and including 4C checks, the heaviest and most comprehensive check for Falcon 7X and 2000EX EASy series aircraft. A 4C check involves detailed inspection of an aircraft’s structure and systems. The CAAC approval is the first time ExecuJet