Boustead in talks to refinance two bonds worth RM1.2 bln

KUALA LUMPUR: Boustead Holdings Bhd (Boustead) is in talks with financial advisors to draw up a strategy to determine funding options for its two bonds worth RM1.2 billion and maturing in the next 12 months.

Boustead in its annual report 2016 said the refinancing exercise is aimed at providing the group with further financial flexibility.

Chief executive officer Tan Sri Lodin Wok Kamarudin said in tandem the group is expected to allocate around RM700 million in capital expenditure (Capex) for the coming year.

“Core areas include the ongoing construction of Nucleus Tower in Mutiara Damansara and development of the Royale Chulan Cherating.

“Capex will also be deployed for new BHPetrol service stations to expand our retail petroleum network,” he said.

For the financial year ended Dec 31, 2016 (FY16) Boustead’s pre-tax profit rose by 175 per cent to RM740.4 million compared with RM269.2 million in 2015.

However, revenue slipped three per cent to RM8.37 billion from RM8.66 billion previously, due to lower contribution from the heavy industries division.

Lodin said FY2016 was challenging as market forces weighed down the group’s potential, but most divisions performed above expectations on strenghtened resolve to improve efficiencies, unlock value and focus on the bottom line.

He said the group’s diversified nature has enabled Boustead to generate a handsome profit in trying times.

Moving forward, he said the year ahead was not expected to be rosy, with certain global geopolitical shifts impacting Malaysia.

He said however, the group is bullish that it would weather these storms to deliver another set of good earnings. — Bernama SHORT-TERM interbank rates closed stable yesterday on Bank Negara Malaysia’s (BNM) intervention to absorb excess liquidity from the financial system.

The liquidity surplus in the conventional system fell to RM38.928 billion from RM44.17 billion in the morning, while in THE Malaysian rubber market ended lower yesterday on weaker demand, responding to the downtrend in regional rubber futures markets despite overnight gains in benchmark crude oil prices, a dealer said.

However, the decline was capped by a slight weakening of the ringgit against the US