KUALA LUMPUR: Perisai Petroleum Teknologi Bhd will see earnings contribution from its investment in Garuda Energy (L) Inc next year for its FY12.
The acquisition will be finalised by year-end, and everything should be finalised in the next 10 days, said Perisai managing director Izzet Ishak after the company’s EGM yesterday.
“In the circular to shareholders we stated that there is a profit after tax guarantee of approximately US$16.67 million (RM53 million), and we expect to see the full impact from this acquisition by FY12,” he added.
He added that the acquisition comes with an annual profit after tax (PAT) guarantee of US$16.67 million for the first two years of its operation as an asset belonging to Perisai.
Izzet noted over the duration of the fixed two years of the deployment, the mobile offshore production unit (Mopu) is expected to contribute approximately US$50 million to Perisai’s turnover.
The acquisition of Garuda Energy for US$70 million allowed the group to tap into its Mopu which is valued between US$105 million to US$110 million.
Currently, the Mopu is contracted to work off the coast of Terengganu, for a fixed duration of two years at a charter rate of US$70,800 a day, noted Perisai in its press statement.
Perisai held an EGM yesterday to seek shareholders’ approval on the proposed acquisition of 100% equity interest in Garuda Energy from Nagendran Nadarajah and the proposed acquisition of the fuel and gas conditioning system and oil and gas (O&G) separation system by Garuda Energy from Hummingbird Energy (L) Inc for a purchase consideration of US$3 million. Majority of the shareholders voted to pass the proposals.
The US$70 million purchase price of Garuda Energy will be satisfied with US$50 million payable in cash, with the remaining US$20 million to be satisfied by the issuance of 97 million shares of Perisai at a valuation of 65 sen each to the vendor, Nagendran.
It was worth noting that back in 2009, Nagendran was a substantial shareholder of Perisai with almost 9% of shareholdings and was also the group’s managing director, before ceasing to become a substantial shareholder in April 2010.
Now with the issuance of 97 million Perisai shares to Nagendran, he will become the second largest shareholder with 12.87% stake in the group after HCM Logistics Ltd with 17.5% shareholdings.
“It was a vote of confidence from the vendor that he wanted to be a part of the group’s growth story,” said Izzet.
On the industry’s outlook next year, Izzet commented that it will remain exciting as the government via Petroliam Nasional Bhd (Petronas) and other O&G companies are finding more oil fields especially in the deep water and marginal oil fields of which will continue to sustain demand for O&G services.
“The oil and gas industry is very much an international industry, which means we can operate almost anywhere in the world. At the moment we are only operating on Malaysian waters but we are interested to look outside of Malaysia, especially in the Asia-Pacific region,” said Izzet.
However, he said that the group doesn’t have any plan to move into the downstream sector of the O&G industry, citing that there are companies of different sizes and specialties, and at the moment Perisai’s niche is in the upstream sector with the deployment of its Mopu.
Aside from Perisai, Izzet said there are only two other companies operating Mopu in Malaysian O&G industry.
For the nine-month period ended Sept 30, Perisai made a RM10 million net profit compared with RM3.3 million in the same period last year. Revenue was down marginally to RM54.5 million from last year’s RM55 million.
This article appeared in The Edge Financial Daily, December 23, 2011.
The acquisition will be finalised by year-end, and everything should be finalised in the next 10 days, said Perisai managing director Izzet Ishak after the company’s EGM yesterday.
“In the circular to shareholders we stated that there is a profit after tax guarantee of approximately US$16.67 million (RM53 million), and we expect to see the full impact from this acquisition by FY12,” he added.
He added that the acquisition comes with an annual profit after tax (PAT) guarantee of US$16.67 million for the first two years of its operation as an asset belonging to Perisai.
Izzet noted over the duration of the fixed two years of the deployment, the mobile offshore production unit (Mopu) is expected to contribute approximately US$50 million to Perisai’s turnover.
The acquisition of Garuda Energy for US$70 million allowed the group to tap into its Mopu which is valued between US$105 million to US$110 million.
Currently, the Mopu is contracted to work off the coast of Terengganu, for a fixed duration of two years at a charter rate of US$70,800 a day, noted Perisai in its press statement.
Perisai held an EGM yesterday to seek shareholders’ approval on the proposed acquisition of 100% equity interest in Garuda Energy from Nagendran Nadarajah and the proposed acquisition of the fuel and gas conditioning system and oil and gas (O&G) separation system by Garuda Energy from Hummingbird Energy (L) Inc for a purchase consideration of US$3 million. Majority of the shareholders voted to pass the proposals.
The US$70 million purchase price of Garuda Energy will be satisfied with US$50 million payable in cash, with the remaining US$20 million to be satisfied by the issuance of 97 million shares of Perisai at a valuation of 65 sen each to the vendor, Nagendran.
It was worth noting that back in 2009, Nagendran was a substantial shareholder of Perisai with almost 9% of shareholdings and was also the group’s managing director, before ceasing to become a substantial shareholder in April 2010.
Now with the issuance of 97 million Perisai shares to Nagendran, he will become the second largest shareholder with 12.87% stake in the group after HCM Logistics Ltd with 17.5% shareholdings.
“It was a vote of confidence from the vendor that he wanted to be a part of the group’s growth story,” said Izzet.
On the industry’s outlook next year, Izzet commented that it will remain exciting as the government via Petroliam Nasional Bhd (Petronas) and other O&G companies are finding more oil fields especially in the deep water and marginal oil fields of which will continue to sustain demand for O&G services.
“The oil and gas industry is very much an international industry, which means we can operate almost anywhere in the world. At the moment we are only operating on Malaysian waters but we are interested to look outside of Malaysia, especially in the Asia-Pacific region,” said Izzet.
However, he said that the group doesn’t have any plan to move into the downstream sector of the O&G industry, citing that there are companies of different sizes and specialties, and at the moment Perisai’s niche is in the upstream sector with the deployment of its Mopu.
Aside from Perisai, Izzet said there are only two other companies operating Mopu in Malaysian O&G industry.
For the nine-month period ended Sept 30, Perisai made a RM10 million net profit compared with RM3.3 million in the same period last year. Revenue was down marginally to RM54.5 million from last year’s RM55 million.
This article appeared in The Edge Financial Daily, December 23, 2011.
