PDZ in LPG pact with Ken Makmur

KUALA LUMPUR:

 PDZ Holdings Bhd had entered into a framework agreement with Ken Makmur Holdings Sdn Bhd for the proposed production of liquefied petroleum gas (LPG) and condensate from the natural gas supplied by the latter from the Rakushechnoye Oil and Gas Field, with an indicative entry cost of RM656 million. Payment for the proposed agreement will be in the combination of cash of RM400 million and the issuance of redeemable convertible preference shares for value of RM256.0 million.

PDZ aborts plan to buy 20% stake in Efogen

 PDZ Holdings Bhd has cancelled its plan to purchase a 20% stake in Efogen Sdn Bhd.

The company had said the proposed acquisition was its first step towards its plan to grow its present core business in the container liner, shipping and shipping management services business into providing offshore supply vessel services to the oil and gas (O&G) industry.

In an announcement, the shipping company said it had mutually agreed to terminate the conditional share acquisition agreement with the seller, Johany Jaafar, after the timeline for the agreement was extended for three times.

PDZ had signed the conditional agreement on May 14 to acquire the 20% stake in the offshore support vessel provider for RM18mil.

Johany owns 40% in Efogen while the balance stake is held by Tan Sri Abdul Rashid Abdul Manaf.

PDZ’s stock closed 0.5 sen higher at 31 sen yesterday, with 32.7 million shares changing hands.

PDZ to sail back into the black

LOSS-making container shipping firm PDZ Holdings Bhd is confident of returning to the black in the financial year ending June 30 2015, backed by its new strategic plans.

Newly-appointed managing director Nazim Rahman said the company will focus on exploring new business opportunities as well injecting new assets to enhance its profitability.

“We’re looking at either introducing new businesses that will generate continuous income or injecting new assets that will significantly improve the company’s earnings.

“These are the two objectives that we are focusing on, in addition to reducing the current operating expenses,” Nazim said at Pelaburan MARA Bhd’s Hari Raya open house, here, last week.

On the new assets, he said PDZ will be focusing on the logistics and oil and gas services segments, while continuing to drive its marine services business.

 “We’ve a few projects in the pipeline. However, I won’t be able to disclose anything yet as I have got to go through the board,” he added.

 As to its financial year ended June 30 2014, Nazim said the company expects to see a boost in its bottom line, mainly by a reduction in operating expenses. Its financial performace for the period is expected to be announced by the end of this month.

The shipping industry took a downturn due overcapacity, high fuel costs and low freight charges following the 2008 economic crisis.

This resulted in many shipping companies unable to repay bank loans for the procurement of new vessels, and with many of them still on the road to recovery.

PDZ, which operates six vessels covering Malaysia, Singapore, Brunei and Myanmar, posted a net loss of RM12.45 million in the financial year ended June 30 2013, from a net profit of RM10.56 million the previous financial year.

It attributed the drop to an impairment loss of RM8.24 million due to a 
vessel that it sold for scrap, and weakening freight rates.

PDZ posted a RM12.45 million loss in the financial year ended June 30 2013, from a RM10.56 million profit the previous financial year.