14/05/2025

BIZ & FINANCE WEDNESDAY | MAY 14, 2025

14

reNIKOLA, Sumitomo sign MoU for bioenergy projects

issue of 143.46 million new ordinary shares and an offer for sale of 50.00 million existing shares. Collectively, these re present 27.3% of OXB’s enlarged issued share capital of 710.0 million ordinary shares upon listing. OXB aims to be listed by the third quarter of 2025. Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO, while Wyncorp Advisory Sdn Bhd is the corporate finance adviser. HLIB maintains ‘neutral’ call on local plantation sector amid mixed outlook KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLIB) has maintained its ‘neutral’ call on the plantation sector, citing a lack of clear demand catalysts and mixed earnings prospects across both upstream and downstream segments. In a research note yesteerday, the bank said planters are likely to post decent year-on-year (y-o-y) results for the first quarter of 2025 (Q1’25), supported by firm palm product prices. However, it noted quarter-on quarter (q-o-q) earnings may be weaker, as lower output – due to seasonal cropping patterns and heavy rainfall in parts of Malaysia – combined with softer palm product prices, is expected to drag down upstream performance in Q1’25. “During the quarter, all planters under our coverage registered negative fresh fruit bunch (FFB) output growth, ranging from -4.9% to -27.7%,” it said, adding that pro duction in Indonesia fared relatively better due to different cropping patterns. The bank added that earnings from the downstream segment are expected to remain subdued, pressured by Malaysia’s export tax structure, high input costs, and a lower price differential with Indo nesian products. On a company-specific basis, HLIB said TSH Resources Bhd recorded the smallest q-o-q decline in FFB output at -4.9%. “We believe this was primarily due to a recovery in crop yield, driven by a shift in the cropping pattern in Indonesia and the resolution of a social dispute at one of its plantation operations in the country,” it said. Meanwhile, Hap Seng Plantations Bhd posted an 11.3% y-o-y decline in output, as harvesting activities were disrupted by floods in early 2025, despite a recovery in March. HLIB also said its crude palm oil price assumptions for 2025 and 2026 remain unchanged at RM4,000 and RM3,800 per tonne, respectively. “Our top picks are SD Guthrie Bhd, with a target price of RM5.17; Jaya Tiasa Holdings Bhd (RM1.35); and IOI Corporation Bhd (RM4.24), it said. – Bernama

o Companies to collaborate on large-scale ventures in Malaysia and Indonesia PETALING JAYA: Malaysia’s renewable energy company reNIKOLA Holdings Sdn Bhd and Sumitomo Corporation have signed a memorandum of understanding (MoU) to jointly develop a portfolio of large-scale bioenergy projects in Malaysia and Indonesia. The strategic partnership signed at the Malaysia Pavilion at Expo 2025 Osaka in Kansai, Japan, marks a significant step forward in advancing the region’s clean energy transition. The collaboration will focus on transforming palm oil production residues into advanced renewable fuels, with an emphasis on developing biomethane and low-carbon alternatives such as liquefied biomethane, biomethanol and other related derivatives. The initiative aims to strengthen the region’s energy resilience by converting palm oil waste into sustainable fuel, while driving the decarbonisation of the palm oil industry. The collaboration is poised to accelerate the transition of Malaysia and Indonesia, the world’s largest palm oil producers, towards low-carbon economies. The sustainable development driven by this partnership is expected to build a next generation business that contributes to a carbon-neutral society by establishing a sustainable energy cycle and advancing global decarbonisation. The managing director of reNIKOLA, Boumhidi Abdelali, said the collaboration with Sumitomo represents a significant milestone in propelling the growth of bioenergy across the region. “reNIKOLA is honoured to be at the

From left: Mosti Undersecretary of Technology Transfer and R&D Commercialisation Division Boniface Edwin Manung, Abdelali, Hasnol Zam Zam, Muramatsu and Malaysia Pavilion Director, Expo 2025 Osaka Ellyza Mastura Ahmad Hanipiah at the signing ceremony.

process of obtaining Bio-Nexus Status for reNIKOLA.” Muramatsu said that by combining Sumitomo’s expertise and resources, the company aims to set new standards for innovation, environ-mental responsibility, and low-carbon energy solutions in the region while driving Asia’s clean energy transition. reNIKOLA, with its strategic shareholder B.Grimm Power, is scaling its renewable energy portfolio, targeting the development of more than 40 projects over the next three years, with primary focus on sustainable fuels. B.Grimm Power group president Dr Harald Link said this MoU marks a pivotal entry point for the group into the bioenergy sector – a bold step aligned with its commitment to sustainability and innovation. “It reflects our vision of Empowering the World Compassionately, by creating cleaner energy solutions for a better tomorrow,” he said.

forefront of this initiative, and we are grateful for our partners and stakeholders who share our commitment and passion for realising it. We are confident that this partnership will be the bedrock of a cleaner and more sustainable future in Malaysia and Indonesia, while raising the benchmark for sustainability within the palm oil industry,” he said. The MoU was signed by Abdelali and Takechi Muramatsu, head of Indonesia Energy Solution Unit No. 2 of Sumitomo. The ceremony was witnessed by Malaysian Ministry of Science and Technology (Mosti) secretary general Datuk Seri Hasnol Zam Zam Ahmad. “We are also thankful to Bioeconomy Corporation for their unwavering support and recognition for our technology and expertise. “To date, we have registered our company in Bioeconomy Corporation’s bio-based accel erator programme, which aims to infuse science, technology, and strategic investments into our bioenergy business. We are also in the

Keyfield bags accommodation work boat deal from Petronas Carigali KUALA LUMPUR: Keyfield International Bhd’s (KIB) wholly owned subsidiary, Keyfield Offshore Sdn Bhd (KOSB), has secured a work order award (WOA) from Petronas Carigali Sdn Bhd (PCSB) for the provision of an accommodation work boat (AWB). with an option to extend for a further two months, commencing in the second quarter of 2025,” KIB said. through various internal control procedures,” it said. KIB also confirmed that none of its directors, major shareholders, or persons connected to them have any interest in the contract.

The group said the award is expected to contribute positively to its earnings and net assets for the financial year ending Dec 31, 2025, without affecting its share capital or shareholding structure. “The acceptance and execution of the contract by KOSB are subject to normal operational risks associated with our business operations, which we actively mitigate

“The board of directors believes that the acceptance and execution of the work order is in the best interest of the company,” it said. KIB added that the announcement was made following the receipt of approval from PCSB to release the information yesterday. – Bernama

In a filing with Bursa Malaysia yesterday, the company said the award, dated April 11, 2025, was issued under the existing panel contractor contract for offshore support vessel services. “Subject to PCSB’s rights under the WOA, the award is for approximately seven months,

Oxford Innotech receives Bursa approval for ACE Market listing PETALING JAYA: Integrated engi neering solutions provider Oxford Innotech Bhd (OXB) has received approval from Bursa Malaysia to list on the ACE Market. neering solutions provider based in Penang that specialises in precision engineering com

ponents, mechanical assembly, and automation and robotic solutions. Leveraging its breadth of products and services, OXB serves manufacturers and assemblers across a broad spectrum of industries, including semicon ductor, electrical and electronics (E&E), automotive, and modular building systems. The company’s initial public offering (IPO) entails a public

Managing director Ng Thean Gin said the approval to list on the ACE Market reflects a shared confidence in the company’s capabilities and the strategic value it brings to the engineering ecosystem and the broader equity market. “There are exciting times ahead for OXB, and we see significant growth opportunities,

the boundaries of innovation and efficiency, while at the same time, helping customers streamline operations, reduce costs, and enhance productivity.” OXB is an integrated engi

particularly in the semiconductor and modular building systems sectors. “We are thrilled to embark on the new chapter in our corporate journey as we continue pushing