Enra set to return to the black in FY18
Oil and gas services provider counts on asset disposals and contracts secured via JVs
KUALA LUMPUR: Oil and gas services provider Enra Group Bhd expects to return to the black in its current financial year 2018 (FY18), underpinned by asset disposals and the contracts secured via its joint ventures (JV).
Executive deputy chairman Tan Sri Kamaluddin Abdullah said the company had formed a number of new JVs, aiming to provide niche and low-cost oil and gas solutions to its partners.
He said while Enra’s financial performance is projected to improve this year, a stronger growth is likely to be seen in FY19.
This is largely because the full positive impact from its initiatives will be seen from the next financial year.
“We are now at the tail-end of our transition period after we have announced the disposal of our legacy assets. We are in the midst of getting the relevant approvals from the regulators.
“Hopefully, the process can be concluded by the end of the year and that would raise additional cash for the company to look into different areas,” Kamaluddin said after Enra’s AGM.
Enra reported a net loss of RM72.08mil in FY17, in contrast to a net profit of RM8.91mil previously.
This was mainly the result of discontinued operations in relation to its investment properties business, the Holiday Plaza and Shamelin Business Centre that had been classified as non-current assets held for sale.
However, the group registered an operating profit of RM28.12mil in the financial year. Its full-year revenue surged by about 46.63% to RM179.34mil from RM122.31mil in FY16.
Enra president and group chief executive officer Datuk Mazlin Junid said the group is eyeing future contracts with a total estimated value of about RM1bil.
He added that the company remained focused on exploring opportunities in marginal oilfield developments in Malaysia, Australia, Myanmar and Thailand.
“We are looking at partnering with oil companies to develop marginal oilfields with our lowcost oil and gas solutions. This makes us one of the very few in the market to offer such niche services.
“In the next 24 months, we hope to secure some of the targeted RM1bil contracts,” said Mazlin.
Currently, Enra’s order book for its upstream business stands at over RM200mil, which can sustain the group for the next four years.
As for its downstream segment, the order book value is RM40mil to RM50mil per year.