Corporate results: Gas Malaysia, Perdana Petroleum, HSS Engineers, Axis REIT, Prostasco, MTAG and Former CJ

Gas Malaysia announces new gas tariff rates
Gas Malaysia Bhd has announced changes to natural gas selling price following a directive by the government via the Energy Commission which will be in effect from Jan 1, 2020 to Dec 31, 2021. The government has approved for the average natural gas selling price applicable for Gas Malaysia Energy and Services Sdn Bhd (GMES) to be lowered by 2.91% from the current figure of RM33.65 per MMBtu. The new selling price for residential users will be RM25.10 per MMBtu while the largest category of over 750,000MMBtu is tagged at RM33.99 per MMBtu. According to a Gas Malaysia filing yesterday, the revision is not applicable to sales of natural gas for vehicles and liquefied petroleum gas supplied in gas cylinder or in bulk supply.  

Perdana secures RM36m work order contract
Perdana Petroleum Bhd’s wholly-owned subsidiary, Perdana Nautika Sdn Bhd (PNSB), has secured two work order contracts from Petronas Carigali Sdn Bhd worth RM36 million for the supply of two anchor handling tug and supply (AHTS) vessels. The commencement date of the two awards would follow the vessel’s on-hire certificates, and will expire after a year from the commencement date, Perdana stated in its exchange filing yesterday. PNSB will provide the vessels with crews and equipment to perform 24-hours services for assisting and servicing drilling rigs, offshore installation, derrick barges, towing and anchor jobs.

HSS Engineers secures RM71m contract in Johor
HSS Engineers Bhd has bagged a RM71.3 million contract to provide detailed design and construction supervision services for the first Bus Rapid Transit (BRT) project in Johor. In an exchange filing yesterday, HSS Engineers stated its associate company, HSS Integrated Sdn Bhd (HSSI), received a letter of award (LoA) from Iskandar Regional Development Authority (IRDA) for the contract which also saw the company appointed as the lead consultant of the project. The works will commence in the fourth quarter of 2019, and are expected to be completed in the first quarter of 2023 followed by a defect liability period of 24 months which ends in the first quarter of 2025. The project win brings the group’s total gross contracts secured for the year to RM210 million.

Axis REIT raises RM63.84m placement to EPF, KWAP
Axis Real Estate Investment Trust (REIT) announced its unitholders have approved the proposed placement of 37.12 million new units to the Employees Provident Fund (EPF) and Kumpulan Wang Persaraan (KWAP). The placement is equivalent to 3% of the total 1.237 billion units issued as at Oct 29, 2019. The trust has successfully placed out its entire second and final tranche of its placement at RM1.72 per unit to raise RM63.84 million. The proceeds raised will be used to repay Axis REIT borrowings and reduce its gearing to 29% after the first and second tranches. The reduced gearing will provide Axis REIT with sufficient headroom to pursue new acquisitions which are in line with Axis REIT’s investment objectives, Axis REIT Managers Bhd’s CEO and ED Leong Kit May said in a statement yesterday. Leong said Axis REIT will acquire high quality accretive properties with strong recurring rental income.

Prostasco wins road management contract in Sarawak
Protasco Bhd’s 30%-owned associate company, PJP Barisan HCM JV Sdn Bhd, was awarded a performance-based contract for the long-term management and maintenance of state roads in Mukah, Sarawak. The 10-year contract is effective from Jan 1, 2020, to Dec 31, 2029 and is worth about RM24.6 million per year and is subject to review every three years with a maximum increase of 7.2% per revision, Protasco’s exchange filing yesterday noted.

MTAG to acquire two Johor freehold industrial land for RM24.56m
MTAG Group Bhd is planning to acquire two pieces of vacant freehold industrial land in Johor Bahru, Johor, from Brilliant Propel Sdn Bhd for RM24.56 million cash. In an exchange filing yesterday, MTAG said the purchase consideration shall be satisfied by proceeds raised from the group’s initial public offering, internally generated funds and external borrowings, which the acquisition is expected to be completed during the second quarter of 2020. The land is 12.1 acres in size and MTAG proposes to construct a new manufacturing plant there to house its corporate office, production lines and warehouse in two phases. MTAG expects the cost of the first phase of construction to be RM24 million.

Former CJ appoints as chairman of Kim Teck Cheong, Berjaya Land
Former chief justice (CJ), Tan Sri Richard Malanjum, has been appointed as the chairman at Kim Teck Cheong Consolidated Bhd and Berjaya Land Bhd. According to separate Bursa Malaysia filings yesterday, the former CJ replaced the retired Tan Sri Razman Hashim Md Hashim Che Din Md Hashim at Berjaya Land. At Kim Teck Cheong, Malanjum replaced Datuk Deleon Quadra @ Kamal Quadra. The former CJ – who was the first East Malaysian to helm the top judiciary post, retired last May after reaching the constitutional maximum age of holding the position at 66 years and six months. He graduated with a law degree from the University of London in 1975 and subsequently admitted to the English Bar, Barrister-At-Law of the Honourable Society of Grays Inn in London. He later joined the Malaysia’s judicial service in 1992 as a Judicial Commissioner and rose to become High Court Judge. In July. He was sworn in as the ninth CJ of Malaysia, and serve the position until April 13, 2019. Currently, he is practicing as a consultant at a private legal firm.