02/07/2025

BIZ & FINANCE WEDNESDAY | JULY 2, 2025

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Malaysian Paper

/thesundaily /

Petronas, Epic ink pact on centralised warehousing in Kemaman base PETALING JAYA: Petroliam Nasional Bhd (Petronas), through Malaysia Petroleum Management (MPM), has inked a strategic partnership with Pangkalan Bekalan Kemaman Sdn Bhd, a subsidiary of Eastern Pacific Industrial Corporation Bhd (Epic), to strengthen the management of upstream materials and warehousing at the Kemaman Supply Base in Terengganu. The collaboration was formalised through a memorandum of under standing (MoU) signed by MPM production and operations management senior general manager Handan Ramli and Epic group CEO Dr Muhtar Suhaili. MPM senior vice-president Datuk Bacho Pilong said, “Malaysia offers an integrated and readily accessible supply chain network that supports ex ploration and production investment activities across the country.” He added that the exchange of the MoU underscores their commitment in further strengthening Malaysia as a preferred E&P investment destination by fostering a conducive environment for growth, operational standardisation and advancing technology-driven solutions across the oil and gas value chain. Under this partnership, both parties aim to establish a “one-stop centre”, offering end-to-end logistics services to support upstream oil and gas operations. A key initiative under this effort is the pilot of a centralised warehouse at the Kemaman Supply Base, targeted to commence operations in 2026. This model will leverage digital techno logies, standardised processes and integrated infrastructure to enhance supply chain efficiency. This approach is expected to improve visibility, reduce inventory holding costs and minimise surplus materials, factors that are critical in improving operational agility and resilience across Malaysia’s upstream sector. PETALING JAYA: Sapura Energy Bhd (SEB) announced that Bursa Malaysia Securities has, through a letter dated June 30, 2025, approved the company’s pro posed regularisation plan (PRP). This marks a significant milestone in Sapura Energy’s strategic efforts to restructure its debt, strengthen its financial position and exit its status as a company classified under Practice Note 17 (PN17) of the Main Market Listing Requirements. The approved PRP includes a comprehensive suite of measures comprising a capital recon struction, debt restructuring, fundraising initiative and the necessary regulatory exemptions. These initiatives are designed to address accumulated losses and reduce total borrowings to support SEB’s ongoing business turnaround and set the foun dation for future growth. The proposed funding is earmarked for the settlement of outstanding payments to vendors in the Malaysian oil and gas ecosystem.

Pertama Digital confident of returning to profitability

KUALA LUMPUR: Government e services provider Pertama Digital Bhd expects to return to profitability after acquiring 80% stakes in two companies, D-Ron Singapore Pte Ltd (D-Ron SG) and D-Ron Malaysia Sdn Bhd (D-Ron MY) with a purchase agreement that includes RM32.4 million profit guarantee over two years. Pertama Digital Group CEO Lim Nasrul Halim said the profit guarantee offered by D-Ron is backed by an escrow arrangement to ensure the guarantee is fully realised. There is also a two-year service agreement with the current founders and leadership team of D-Ron as Lim said it was important for D-Ron to undergo a smooth transition into a Pertama Digital subsidiary. “We are already slightly profitable according to last quarter’s financial report, but it isn’t good enough for us and our share holders. “We are confident about our profitability mainly because of our acquisition of D-Ron which will o Strategic acquisitions of two companies form foundation for regularisation and turnaround Ű BY MAHADHIR MONIHULDIN sunbiz@thesundaily.com

From left: Lim, Pertama Digital chairman Datuk Ahmad Nazri Abdullah and D-Ron Group CEO Ronnie Hun Tock Juan at the press conference.

come with a profit guarantee of RM32.4 million,” he told reporters during a press conference at Pertama Digital’s corporate head quarters yesterday. Lim said the acquisition of D Ron was not for the sake of profitability but because the com panies, which specialise in infor mation technology and sur veillance hardware distribution, comple-mented well with others in the Pertama Digital group. “We are not acquiring these companies for the sake of profitability. It’s strategic and there’s a bigger picture to it.” Pertama Digital plans to acquire D-Ron SG for RM101.14 million (S$30.41 million) and D-Ron MY for RM4.99 million from three vendors, bringing the total amount to RM106.13 million in cash. Recently, Pertama Digital received approval from Bursa Malaysia for an extension until Oct 31, 2025, to submit its regularisation plan.

Lim said he was confident that the company will be able to submit the regularisation plan earlier than end October. “We are working hard towards our due diligence process and D Ron’s leadership has been helpful in expediting the process of preparing the plan. Once we have shareholder approval we can submit the plan early.” Initially, Pertama Digital failed to submit a regularisation plan by the Feb 9, 2025 deadline as required by Bursa Malaysia. Its conditional acquisition of D Ron forms the cornerstone of Pertama Digital’s regularisation plan built on a series of high-impact deliverables. The deliverables include the completion of a major acquisition with strong earnings visibility, positioning Pertama Digital as a key player in digital infrastructure; the evolution of MyPay to strengthen its role as a trusted digital backbone for

government and public sector innovation; and a partnership with Infobip to enhance public sector’s commu nication infrastructure and govern ment-to-citizen engagement. Other ongoing projects include eJamin , a bail payment system that has processed over RM1 billion in transactions, and BizKecil , a platform supporting small enterprises. The company is also exploring a cybersecurity collaboration with Netsec Sdn Bhd for the public sector. Pertama Digital said these efforts form part of its plan to strengthen financial performance and opera tional viability. The company will now proceed with comprehensive due diligence on D-Ron Group and will convene an extraordinary general meeting to seek shareholder approval. Pertama Digital will also work closely with Bursa Malaysia to secure all the necessary regulatory clearances. transactions Meanwhile, CIMB Securities Sdn Bhd anticipates Yinson’s core profit to soften in Q2’26 on a quarter-on-quarter (q-o-q) basis, primarily due to the absence of one-off gains from the reversal of liquidated damages recognised in Q1’26, and a further decline in engineering, procurement, construction, installation and commissioning earnings as the FPSO Agogo project nears completion. It said that with conversion progress now at the tail end, revenue recognition is expected to taper off while fixed costs and overhead remain. “That said, we expect earnings momentum to pick up meaningfully in 2H 2026, underpinned by the commencement of Agogo’s production operations,” it added. Overall, CIMB Securities forecasts a 52.0% q-o-q decline in core net profit for Q2’26, followed by a strong rebound, with projected q-o-q growth of 76.3% in Q3’26 and 86.5% in Q4’26. CIMB has maintained its “Buy” rating on Yinson, with a target price of RM2.93, supported by long-term earnings visibility from its US$19.6 billion order book, which extends through to 2048. – Bernama

Yinson to see stronger cash flow as new projects come on stream: RHB Investment

Sapura Energy regularisation plan receives Bursa approval

“We wish to extend our gratitude to Bursa Securities for their approval,” said Sapura Energy group CEO Muhammad Zamri Jusoh . “This not only validates our regularisation strategy but also paves the way for us to emerge from PN17 stronger and more resilient. We remain committed to executing the Regularisation Plan responsibly, delivering value to our stakeholders and restoring market confidence in our busi ness.” A general meeting of shareholders will be convened later to approve the PRP, after which Sapura Energy will imple ment the approved measures and achieve full compliance with Bursa Securities’ listing require ments. With the restructuring effec tive date targeted for August 2025 or latest by the longstop date of March 11, 2026, the group is set to conclude one of the most complex restructuring exercises in the country’s history.

KUALA LUMPUR: RHB Investment Bank Bhd (RHB IB) expects stronger cash flow generation from Yinson Holdings Bhd, driven by newly commercialised floating production storage and offloading (FPSO) units, with FPSO Agogo ahead of schedule to achieve first oil by the fourth quarter of 2026 (Q4’26). In a research note, the investment bank said that streamlining and rightsizing efforts are also expected to reduce overheads going forward. “Global FPSO demand remains robust, and Yinson is comfortable proceeding with two new projects,” it said, maintaining a “Buy” call with a target price of RM3.69. RHB IB also noted that following operational streamlining in the technology and renewable energy divisions, the financial impact should become more apparent for these segments from the second half of 2026 (H2’26). Yinson is targeting earnings before interest, taxes, depreciation and amortisation breakeven in the financial year 2026 (FY26), with the potential to turn earnings-neutral for its electric vehicle business, CharEV, by FY27.

Echoing this positive outlook, Maybank Investment Bank Bhd (Maybank IB) said the FPSO market remains robust, with a global tender pipeline of up to 13 potential awards over the next 12 months. “Yinson may bid for a new job in FY 2026 within the mid-sized segment, targeting clients offering high upfront payment,” it said. Maybank IB viewed that the successful hook-up and first oil of FPSO Agogo would be a key catalyst, helping Yinson mitigate risks related to construction, execution, cost overrun and delivery. It also said that additional cash flows from FPSO Agogo’s bareboat charter are expected to support debt reduction for related projects.