Corporate results: MMHE, Lotte Chemical, CCM, YFG, Magni-Tech, AMMB and Berjaya Sports Toto
MMHE slaps with RM125.1m claims from KPOC
Malaysia Marine and Heavy Engineering Holdings Bhd’s (MHB) wholly-owned subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), had received a notice of arbitration from Kebabangan Petroleum Operating Co Sdn Bhd (KPOC) in relation to claims worth RM125.1 million arising from two contracts. The first contract is the fabrication of KBB Topsides dated Sept 20, 2011, between KPOC and Sime Darby Engineering Sdn Bhd, while the second is the novation agreement in relation to the first contract dated Mar 3, 2012 between the two companies and MMHE. KPOC, in its notice of arbitration, claimed MMHE was and is in breach of the express and/or implied terms of the contracts in respect of the supply of certain valves. MHB, on its exchange filing yesterday, said the expected loss, if any arising from this claim is anticipated to be at RM125 million or more. No operational impact is expected to arise from the claim. MMHE added it will vigorously defend the claims and is exploring its options to pursue a counterclaim against KPOC. 
 
Lotte Chemical inks land preparation contract in Indonesia
Lotte Chemical Titan Holding Bhd’s wholly-owned subsidiary, PT. Lotte Chemical Indonesia, has entered into a land preparation contract with Lotte Engineering & Construction Co Ltd (LEC) and PT Hans Enjiniring dan Konstruksi (HEK) for land preparation work for the Lotte Chemical Indonesia’s new ethylene (Line) project in Banten, Indonesia. LEC and HEK shall be paid 1.31 trillion rupiah (RM377.16 million) for the land preparation work. LEC holds 70% of participation in the contract, while HEK the remaining 30%, Lotte Chemical noted in its exchange filing yesterday. 
 
CCM appoints new chairman
The Chemical Company of Malaysia Bhd (CCM) has appointed Datuk Idris Kechot as its non independent and non executive chairman effective yesterday. He will succeed Datin Paduka Kartini Abdul Manaf who was appointed acting chairman last July. In a filing exchange yesterday, CCM noted Idris was formerly the deputy president and group chief operating officer of Permodalan Nasional Bhd (PNB) and had overseen the asset management department. He also holds directorships in Projek Lintasan Kota Holdings Sdn Bhd (Prolintas), Perusahaan Otomobil Kedua Sdn Bhd, Pelaburan Hartanah Nasional Bhd and Goodyear Malaysia Bhd. 
 
YFG bags RM34m sub-contract for LRT3
YFG Bhd’s wholly-owned subsidiary, YFG Engineering Sdn Bhd, has accepted a sub-contract worth RM33.86 million from Dynasynergy M&E Engineering Sdn Bhd to undertake electrical works for the light rail transit line 3 (LRT3); station 12 (section 14 station); station 14 (UiTM station) and street lighting and traffic light system. In an exchange filing yesterday, YFG noted the project involves the supply, delivery, installation, commission and maintenance of electrical works, and is expected to be completed within 14 months. .
 
Magni-Tech 3Q profit increases 14.39% to RM35.62m
Magni-Tech Industries Bhd net profit for the third quarter ended Jan 31, 2019 (3QFY19) increased 14.39% year-on-year (YoY) to RM35.62 million due to higher operating income. In an exchange filing yesterday, the packaging products maker noted a RM651,000 operating income in the quarter as compared to a RM2.15 million operating expenses a year ago. Revenue for the quarter decreased to RM309 million from RM313.3 million in 3QFY18 due to lower sale orders received. Its garment segment revenue for the quarter fell 1.1% while packaging segment revenue dropped 4.2%. Magni-Tech said its operating environment for the remaining quarter of FY19 is expected to be challenging amid persisting global economic uncertainties. Nevertheless, its garment and packaging businesses are expected to remain profitable during the said period, its filing stated.
 
AMMB gains RM229.94m from NPLs disposal
AMMB Holdings Bhd told Bursa Malaysia yesterday AmBank (M) Bhd and AmBank Islamic Bhd’s disposal of their respective non-performing loans/financing to Aiqon Capital Group Sdn Bhd has been completed and AMMB will record an aggregated after tax net gain estimated at RM229.94 million from the proposed disposal. The banking group added the disposal will enhance its earnings per share and net asset per share by 7.6 sen per share.
 
BToto 3Q profit remains flat at RM59.07m
Berjaya Sports Toto Bhd’s (BToto) net profit for the third quarter ended Jan 31, 2019 (3QFY19) stood at RM59.07 million versus RM59.23 million net profit it made a year ago, as the improved results attained by H.R. Owen Plc were mitigated by the lower results of Philippine Gaming Management Corp (PGMC) and Sports Toto Malaysia Sdn Bhd. Revenue for the quarter decreased slightly to RM1.36 billion from RM1.4 billion in 3QFY18 mainly due to lower revenue reported by H.R. Owen and PGMC. H.R. Owen’s revenue decreased by 5.6% year-on-year (YoY) to RM532.1 million mainly due to lower sales from the used car sector but mitigated by improved sales from the new car sector. PGMC reported a YoY drop in revenue of 41.6% YoY to RM19.4 million mainly due to lower lease rental income earned from the Philippine Charity Sweepstakes Office. Btoto declared a third interim dividend of 3.5 sen per share in respect of FY19 to be paid on May 10, 2019.