Enra set to re­turn to the black in FY18

Oil and gas ser­vices provider counts on as­set dis­pos­als and con­tracts se­cured via JVs

The Star Malaysia - StarBiz - - News - By GANESHWARAN KANA ganeshwaran@thes­tar.com.my

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.

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