State govt receives RM6 mln dividend from SEC
KOTA KINABALU: Sabah Energy Corporation Sdn Bhd (SEC) paid a dividend of RM6 million to the State government for the financial year ending December 31, 2017.
The dividend was presented to Permanent Secretary in the Ministry of Finance Datuk Pengiran Hassanel, by SEC chief executive officer Datuk Harun Ismail, witnessed by Chief Minister cum Minister of Finance Datuk Seri Panglima Mohd Shafie Apdal, SEC chairman Datuk Ramlee Dua and SEC board of directors.
While 2017 was challenging in view of continued uncertainties related to the downturn in global oil prices, Harun emphasised that SEC and its three companies would remain focused on energy and the oil and gas sectors, areas in which it had a long experience.
“SEC’s strong balance sheet allows the company to continue organic growth in the area of natural gas distribution. The third phase of natural gas distribution to deliver energy in the form of liquefied gas would commence by the end of 2018.
“Apart from existing industrial users in the greater Kota Kinabalu area, this liquefied gas system would, for the first time, enable industries in the east coast and interior of Sabah to also benefit from cleaner and cheaper energy.
“This would assist more stakeholders in the business community throughout Sabah to lower operational cost and enhance competitiveness, not only in the local but also export markets,” he said.
Harun also said SEC and its group of companies’ profits before tax in 2017 was RM48.44 million, which was lower than that of 2016, which was RM69.55 million.
While the natural gas distribution business at the company level saw increased revenues, the 2017 revenues for the supply base operations decreased in line with the decline in activities for the oil and gas sector in Labuan.
“Associated companies under SEC in the manufacturing sectors also contributed less profit to the group in 2017.
“However, despite lower overall profits, SEC would continue its prudent practice of ploughing back a portion of its profits to internally finance identified projects that would bring economic benefits to Sabah in assisting the State’s development,” he added.
According to Harun, the accumulated profits after reinvestments over the years had resulted in shareholders’ funds increasing to over RM910 million as at end 2017, against the State government’s paid up capital of RM299.9 million.
In addition to the increase in value to its shareholders, SEC had also paid dividends totalling RM196.5 million to the State government to date, he said.