By Jose Barrock
Dayang Enterprise Holdings Bhd could bag as much as RM4 billion worth of jobs while Petra Energy Bhd could secure some RM2 billion in contracts from the Pan Malaysia cluster of hook up construction and commissioning (HUCC) contracts, industry sources say.
Other winners include Sarku Resources Sdn Bhd, a wholly owned unit of oil and gas giants SapuraKencana Bhd, and Shapadu Corp Sdn Bhd, where wholly owned Shapadu Energy & Engineering Sdn Bhd handles HUCC jobs, but these companies are understood to have secured a smaller quantum of contracts.
The award of the jobs could be made anytime soon.
Interestingly enough one of the contracts likely to be secured by Dayang include a RM2.5 billion HUCC and maintenance contract under Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd, where an extension until year end was given to Petra Energy recently.
Dayang is also understood to have secured substantial contracts from Petronas Carigali Sdn Bhd, and Murphy Oil, the industry source says.
“Dayang and Petra (Energy) managed to secure a chunk of the jobs, there was a pre-award meeting earlier this week, to iron out a few of the issues,” the source said.
Officials from both Dayang and Petra Energy didn’t not want to comment when contacted by KiniBiz.
“It’s was an open secret, that the two (Dayang and Petra Energy) would win the lion’s share of the jobs…but it does look good for Dayang,” an analyst who covers the oil and gas sector said.
Dayang’s stock has been running and has gained about 50 percent since early March this year, buoyed by higher trading volume.
The appeal of Dayang lies in its strong balance sheet, and its vast oil and gas experience.
As at March this year Dayang had an orderbook of about RM1.2 billion.
For its financial year ended December last year, Dayang posted a net profit of RM130.23 million on the back of RM401.21 million in revenue.
As at end last year the company had cash and bank balances of RM153.67 million, while on the other side of the balance sheet the company had long term debt commitments of RM44.69 million and short term borrowings of RM22.57 million.
Tengku Datuk Yusof Tengku Ahmad Shahruddin
The company’s largest shareholders are Sarawak based Naim Holdings Bhd with 33.64%, the Ling family with about 22%, managing director Tengku Datuk Yusof Tengku Ahmad Shahruddin with 10.07% and pilgrim fund Lembaga Tabung Haji with 5.01 percent.
Despite being the largest shareholder, Naim Holdings does not play much of a role in the management of the company. Industry sources say Naim has been scouting around for a buyer for its block in Dayang.
Sarawak chief minister Abdul Taib Mahmud’s cousin Abdul Hamed Sepawi has about 17 per cent in Naim, while another substantial shareholder with 24 per cent is Hasmi Hasnan, who is also a close associate of both Taib and Abdul Hamed.
Petra Energy meanwhile also has a strong set of shareholders, such as East Malaysian businessman Datuk Bustari Yusoff controlling 27.5% equity interest, IGB Corp Bhd controlled Wah Seong Corp Bhd with 26.9% shareholding, and Mohamed Nizam Abdul Razak brother of current premier Najib Abdul Razak, owning a 9.09% stake.
Petra Energy for its year ended December 2012 posted net profits of RM7.44 million from RM654.89 million in revenue. Earnings were dragged down by a RM13.91 million net loss in the fourth quarter of the year, brought about by the recognition of losses at a civil engineering services arm.
As at end last year Petra Energy had RM100.70 million in cash and bank balances, while on the other side of the balance sheet the company had short term debt commitments of RM181.99 million and long term borrowings of RM9.79 million.
Petra Energy’s stock meanwhile has gained by more than 25 percent since late last month.
Considering the company’s orderbok stands at about RM300 million to RM400 million, this award is boost.
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