Esso Malaysia chairman resigns after Exxon disposal

KUALA LUMPUR (March 30): ESSO MALAYSIA BHD []’s chairman and executive director Hugh Walter Alexander Thompson resigned from his posts after ExxonMobil International Holdings Inc disposed of its entire stake in Esso Malaysia.

Filings with Bursa Malaysia showed that Thompson’s resignation takes effect from Saturday, March 31 as he was nominated to the board by ExxonMobil.

The changes followed the ExxonMobil's disposal of its 65% stake in Esso Malaysia to San Miguel Corporation’s unit Petron Oil & Gas International Sdn Bhd on Friday. Other board changes were the resignations of Fatimah Merican, Faridah Ali and Abu Bakar Siddik Che Embi as executive directors of Esso Malaysia.

Appointed as executive director to Esso Malaysia was Ramon S. Ang, who is the chairman and chief executive officer of Petron Corporation. Also appointed executive directors were Eric O. Recto, Aurora T. Calderon and Lubin B. Nepomuceno from the San Miguel group.

Stock market data showed that the block of shares, comprising of 175.5 million shares, was crossed at an average price of RM3.41. San Miguel is obliged to extend a mandatory take-over offer for the remaining 35% or 94.50 million shares.

In a separate statement, Esso Malaysia said the existing agreements between Esso Malaysia and stated affiliates of Exxon Mobil Corporation would terminate with effect from midnight of March 30.

“Esso Malaysia Bhd has necessary arrangements in place to effectively replace services/products that it obtained vide said agreements to ensure seamless continuity of operations post termination of said agreements with Exxon Mobil Corporation's affiliates,” it said.



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ExxonMobil’s sale of 175.5m Esso Malaysia shares completed

KUALA LUMPUR (March 30): ExxonMobil International Holdings Inc’s disposal of a 65% stake in ESSO MALAYSIA BHD [] to San Miguel Corporation was completed on Friday.

Stock market data showed that the block of shares, comprising of 175.5 million shares, was crossed at an average price of RM3.41.

This was 14.9 sen below Thursday’s closing price of RM3.56.

According to latest corporate development, the sales and purchase agreement become unconditional on March 16 upon completion of the acquisition.

San Miguel is obliged to extend a mandatory take-over offer for the remaining 35% or 94.50 million shares.



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Market dips in directionless trade, Greek bailout deal may support

KUALA LUMPUR (Feb 21): The Malaysian market slipped in directionless trade on Tuesday morning as investors stayed on the sidelines but the positive news that euro zone finance ministers sealed a second bailout for debt-laden Greece could provide some lift to sentiment.

At 12.30pm, the FBM KLCI fell 0.98 of a point to 1,559.59. Turnover was 913.22 million shares valued at RM649.72 million. Declining stocks beat advancers 431 to 236 while 342 stocks were unchanged.

All key regional markets were in the red. Japan’s Nikkei 225 fell 0.3% to 9,456.70, Hong Kong’s Hang Seng Index 0.47% to 21,323.90, Shanghai’s Composite Index 0.37% to 2,354.74, Taiwan’s Taiex 0.61% to 7,906.50, South Korea’s Kospi 0.75% to 2,009.66 and Singapore’s Straits Times Index 0.14% to 3,016.82.

Brent fell 6 cents to US$119.99 while US light crude oil rose US$1.59 to US$104.83. The ringgit was nearly unchanged against the US dollar at 3.0214. Crude palm oil futures fell RM4 to RM3,241 per tonne.

Reuters reported euro zone officials as saying that the finance ministers had nailed measures to cut Greece's debt to around 121% of gross domestic product by 2020, close to their original target of 120, after negotiators for private bondholders offered to accept a bigger loss to help plug the funding gap.

It reported that agreement on a 130-billion-euro rescue package with strict conditions attached will help draw a line under months of uncertainty that has shaken the currency bloc, and avert an imminent Greek bankruptcy.

At Bursa Malaysia, BAT was the top loser, down 94 sen to RM52.96 as it gave up most of Monday’s gains of RM1.38.

Esso fell 11 sen to RM3.65 after posting lower earnings. Nestle and Top Glove fell 10 sen each to RM55.90 and RM4.82.

Penny stock Widetec fell 25 sen to 41 sen but with only 2,000 shares done.

Naim Indah Corp was the most active with 67.43 million shares done, adding 2.5 sen to 50 sen.

PLANTATION []s were among the major gainers. United Plantations was the top gainer, rising 60 sen to RM23.36 after posating a strong set of results while BLD Plantations added 21 sen to RM10.04, Sarawak Plantations 14 sen to RM3.06.

Market expectations of bumper dividends from Maxis saw the share price crossing RM6, up 21 sen to RM6.02 in many months.



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Esso Malaysia falls on lower Q4 income

Esso Malaysia Bhd, which operates an oil refinery and sells petroleum products, dropped 2.1 percent to RM3.68 in Kuala Lumpur trading at 10.15am, bound for its steepest decline since Dec. 30.

Fourth-quarter net income slid to RM34.6 million from RM121.5 million a year earlier, it said in an exchange filing. -- Bloomberg



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Blue chips cautious in early trade, eyes on Greece again

KUALA LUMPUR (Feb 21): Blue chips on Bursa Malaysia slipped in early trade on Tuesday as investors awaited the outcome of a 130 billion ero rescue for Greece.

Reuters reported that Euro zone finance ministers were expected to approve the rescue plan with strict conditions after months of uncertainty that has shaken the currency bloc, although work remained to be done to make the numbers add up.

At 9.30am, the FBM KLCI was down 1.16 points to 1,559.41. Turnover was 282.20 million shares valued at RM133.63 million. However, gainers led losers 174 to 161 while 238 stocks were unchanged.

Among the decliners were Esso, down 12 sen to RM3.64 after its earnings fell. CI Holdings lost seven sen to Rm1.26, Top Glove six sen to RM4.86, KLK also six sen to RM24.08 and Bursa Malaysia five sen to RM7.35.

Among the lower liners SPB lost 10 sen to RM3.61, Jobstreet five sen to RM2.16 and KKB four sen to RM1.71.



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Stocks to watch: Affin, Sarawak Plantations, Mitrajaya, Nilai Resources, Notion VTec

KUALA LUMPUR (Feb 21): As the corporate reporting season picks up pace, there seem to be a mixed bag of results, with banks and PLANTATION []s providing slight upside compared with the other sectors.

AFFIN HOLDINGS BHD []’s earnings rose 4.7% to RM132.54 million in the quarter ended Dec 31, 2011 from RM126.57 million a year ago. Its revenue increased by 14.4% to RM709.81 million from RM620.54 million. Earnings per share were 8.87 sen compared with 8.47 sen.

For the financial year ended Dec 31, 2011, the banking group said it recorded its best ever performance so far, with record profit before tax (PBT) of RM709.1 million compared with RM637.5 million in 2010. This was a RM76.1 million or 11.2% increase.

SARAWAK PLANTATION BHD [] posted net profit of RM19.66 million in the fourth quarter ended Dec 31, 2011, up 139% from the RM34.35 million a year ago when there was impairment losses of RM10.60 million. Revenue fell 3.4% to RM111.62 million from RM115.61 million a year ago. Its administrative expenses declined to RM8.83 million from RM18.60 million

For FY11, Affin said the earnings rose 139% to RM82.24 million from RM34.35 million. Revenue increased by 40.6% to RM479.36 million from RM340.83 million following the increase of revenue from the oil palm operations segment.

MITRAJAYA HOLDINGS BHD [] has secured three projects valued at RM181.55 million, of which two are for the light rail transit (LRT) contracts and one for a housing project in Putrajaya.

The major shareholders of Nilai Resources Group Bhd have proposed a selective capital repayment (SCR) of RM1.50 a share, which is a premium of 20 sen above the Feb 17 closing price of RM1.30.

The major shareholders are Akarmas Sdn Bhd and Tan Sri Dr Gan Kong Seng who collectively hold 62.937 million shares or 55.1% equity, who will not be entitled to the SCR.

NOTION VTEC BHD [] has proposed a bonus issue of up to 138.91 million new shares on the basis of three bonus shares for every four existing shares held.

It reported net losses of RM4.83million in the first quarter ended Dec 31, 2011 compared with net profit of RM13.41 million a year ago. Its revenue fell 33.9% to RM39.63 million from RM59.98 million. Its loss per share was 3.13 sen compared with earnings per share of 8.79 sen.

ESSO MALAYSIA BHD []’s earnings fell 71.5% to RM34.58 million in the fourth quarter ended Dec 31, 2011 from RM121.51 million a year ago. Its revenue was 16.5% higher at RM2.75 billion compared with RM2.359 billion a year ago. Earnings per share were 12.80 sen compared with 45 sen.

For the financial year ended Dec 31, 2011, it reported a 42.9% decline in earnings to RM153.35 million from RM268.58 million in FY10. Revenue, however, increased 33.6% to RM11.26 billion from RM8.42 billion.

POS MALAYSIA BHD [] recorded net profit of RM25.06 million in the October-December quarter in 2011 compared with RM6.08 million a year ago mainly due to a provision of investment and a one-off impairment provision. It said revenue increased by 4.4% to RM289.63 million from RM277.33 million.

In the 12-month period from January to December 2011, its earnings rose about 66.8% to RM112 million from RM67.11 million. Its revenue increased 15.6% to RM1.173billion from RM1.014 billion.

The group’s profit from operations rose 38.2% to RM146.0 million (2010: RM105.7 million) for the period ended Dec 31, 2011, due to the full year impact of domestic tariff increase commencing July 1, 2010 coupled with the benefits realized from transformation initiatives.



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Esso Malaysia 4Q earnings fall 71.5% to RM34.58m

KUALA LUMPUR (Feb 20): ESSO MALAYSIA BHD []’s earnings fell 71.5% to RM34.58 million in the fourth quarter ended Dec 31, 2011 from RM121.51 million a year ago.

It said on Monday its revenue was 16.5% higher at RM2.75 billion compared with RM2.359 billion a year ago. Earnings per share were 12.80 sen compared with 45 sen.

For the financial year ended Dec 31, 2011, it reported a 42.9% decline in earnings to RM153.35 million from RM268.58 million in FY10. Revenue, however, increased 33.6% to RM11.26 billion from RM8.42 billion.

“The lower profit for the fourth quarter and for the full year of 2011 compared to the same periods in 2010 was a result of lower operating margins as higher crude prices were not fully offset by the increase in product prices. The increased crude and product prices, however, generated inventory holding gains totaling RM108 million for the full year 2011,” Esso Malaysia said.



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KLCI ends year with a bang, posts YTD gain of 0.78%

KUALA LUMPUR (Dec 30): The FBM KLCI ended a volatile 2011 on a high note, as late buying into banking and key blue chips saw the index reversing its earlier losses to register a 0.78% year-to-date gain.

Regional markets, with the exception of Indonesia and the Philippines ended their year in losses, as lingering concerns over the eurozone debt crisis and heightened worries about the global economy kept investors on the sidelines.

The FBM KLCI jumped 1.6% or 24.04 points to close at 1,530.73. However, this is still ways off its all-time high of 1,597.08 on July 11 this year.

Gainers led losers by 468 to 327, while 336 counters traded unchanged. Volume was 1.33 billion shares valued at RM1.53 billion.

At the regional markets, the Shanghai Composite Index rose 1.19% to 2,199.42, Japan’s Nikkei 225 increased 0.67% to 8,455.35, Hong Kong’s Hang Seng Index added 0.20% to 18,434.39, while Taiwan’s Taiex fell 2.74% to 7,072.08 and Singapore’s Straits Times Index lost 0.99% to 2,646.35.

On Bursa Malaysia, Petronas Dagangan rose 50 sen to RM17.80, BAT 32 sen to RM49.92, JT International added 24 sen to RM7.39, Nestle and Sime Darby added 20 sen each to RM56.20 and RM9.20.

Among the banking stocks, CIMB jumped 28 sen to RM7.44, Maybank 26 sen to RM8.58, Public Bank 20 sen to RM13.38, RHB Capital 18 sen to RM7.48, HLFG 10 sen to RM11.66 and Hong Leong Bank up two sen to RM10.90.

Decliners included AIC that fell 15 sen to RM1.15, DKSH and Wah Seong down nine sen each to RM1.56 and RM2.07, Paragon and Esso eight sen each to 24 sen and RM3.54, while Tan Chong lost seven sen to RM4.08.

The actives included Utopia, Mulpha, KFCH, Wijaya, Coastal, Mah Sing and Sanichi.



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KLCI extends gains at mid-day as Asian markets rise

KUALA LUMPUR (Dec 23): The FBM KLCI extended its gains at the mid-day break on Friday, in line with its regional peers ahead of more economic data coming out from the US later today, as most global markets head for an extended weekend with the Christmas break.

At 12.30pm, the FBM KLCI was up 3.30 points to 1,494.76.

Gainers led losers by 304 to 279, while 320 counters traded unchanged. Volume was 451.74 million shares valued at RM363.87 million.

The ringgit strengthened 0.30% to 3.1565 versus the US dollar; crude palm oil futures for the third month delivery rose RM32 per tonne to RM3,129, crude oil was up 20 cents per barrel to US$99.73 and gold added US$4.75 an ounce to US$1,610.30.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.08% to 18.576.06, the Shanghai Composite Index gained 1.45% to 2,218.01, Taiwan’s Taiex added 2.14% to 7,115.13, South Korea’s Kospi rose 1.19% to 1,869.45 and Singapore’s Straits Times Index edged up 0.35% to 2,674.11.

On Bursa Malaysia, Nestle and BAT rose 30 sen each to RM56.90 and RM48.18, AIC was up 15 sen to RM1.30, MAHB 13 sen to RM5.59, while KLK, UMW, Esso, Genting and IJM rose 10 sen each to RM22.10, RM6.55, RM3.51, RM10.86 and RM5.52 respectively.

Among the decliners, Tasco, Shell and PPB fell 10 sen each to RM1.55, RM9.20 and RM17 respectively; HELP and Public Bank lost six sen each to RM1.65 and RM13.20, Huat Lai and WCT fell five sen each to RM2.30 and RM2.25, while Bina Goodyear was down 4.5 sen to 60 sen.

The actives included Perisai, Astral Supreme, Sanichi, UEM Land, Envair, KNM and Utopia.



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Genting, Sime lift KLCI in early trade

KUALA LUMPUR (Nov 29): Shares of GENTING BHD [] and Sime Darby lifted the FBM KLCI in early trade on Tuesday, as trading sentiment was given a boost by the firmer overnight close on Wall Street.

In New York, stocks rebounded from seven days of losses on Monday as investors used the latest effort from European leaders to resolve the region's debt crisis as an opportunity to cover short positions.

At Bursa Malaysia, the KLCI was up 7.78 points to 1,439.33 at 9.11am. Turnover was 127.77 million shares valued at RM96.36 million. The broader market was very positive with 298 gainers to 33 losers while 100 counters were unchanged.

Genting rose 22 sen to RM10.40 while Sime Darby’s strong first quarter results saw it adding 14 sen to RM8.80.

BAT was the top gainer, adding 60 sen to RM46 while HLFG gained 22 sen to RM11.38, Nestle, 20 sen to RM51.10, Esso 15 sen to RM3.56 and Batu Kawan 12 sen to RM16.70.



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Esso Malaysia posts net loss RM37.86m in 3Q

KUALA LUMPUR (Nov 23): ESSO MALAYSIA BHD [] posted net loss RM37.86 million in the third quarter ended Sept 30, 2011 compared to net profit RM15.35 million a year earlier, due mainly to lower operating margin and forex loss partially offset by higher sales volume.

The company said its revenue for the quarter rose 57.1% to RM2.85 billion from RM1.81 billion in 2010.

Loss per share was 14 sen compared to earnings per share of 5.7 sen in 2010, while net assets per share was RM3.14.

Esso’s net profit for the nine months ended Sept 30 fell 19.23% to RM118.78 million from RM147.06 million in 2010, despite revenue for the period rising to RM8.52 billion from RM6.07 billion.

Reviewing its performance, Esso said the increase in revenues in 3Q was driven by higher average product prices and higher sales volume.

On its prospects, Esso said the outlook for the industry remains challenging given the expected slowdown in global economic growth and the continued crude and product prices volatility.

“In this environment our strategy remains focused on flawless operations, cost control and product and service quality, while sustaining our competitive position,” it said.



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San Miguel-Esso deal gets go ahead from Miti and MTDCC

KUALA LUMPUR: The International Trade and Industries Ministry (Miti) and the Domestic Trade, Cooperatives and Consumerism Ministry (MTDCC) have given their letters of approval for San Miguel Corp’s proposed acquisition of a 65% stake in Main Market-listed Esso Malaysia Bhd.

According to the announcement, the MTDCC’s approval was given subject to operational conditions relating to dealers and employees, and Esso Malaysia obtaining relevant approvals from other relevant government agencies.

“Esso Malaysia will make further announcements at the appropriate time when there are any material developments related to the matter,” stated Esso Malaysia in the announcement.

On Aug 17, the Philippines-based San Miguel announced that it was buying the 65% stake in Esso Malaysia from ExxonMobil International Holdings Inc for RM614.25 million cash. This worked out to RM3.50 per share.

Yesterday, Esso Malaysia’s share price closed at RM3.47. Once the acquisition is completed, San Miguel will have to undertake an offer for the remaining Esso Malaysia shares it does not own.

It is worth noting that arm forces fund Lembaga Tabung Angkatan Tentera (LTAT) had earlier bid for the stake in Esso Malaysia but it could not match San Miguel’s offer. There was subsequently a call for the government to intervene for the stake to be sold to Malaysian companies but this was rejected by the government.

In addition to the stake in Esso Malaysia, San Miguel had also acquired from the ExxonMobil group other Malaysia units such as ExxonMobil Borneo Sdn Bhd and ExxonMobil Malaysia Sdn Bhd for a collective price tag of US$404 million (RM1.28 billion).

According to reports, San Miguel saw potentials in upgrading Esso Malaysia’s existing refineries, which would help it move up the value chain. It is also lured by the steady earnings stream coming in from Esso Malaysia’s 560 retail stations.

San Miguel, which is better known for its food and brewery activities, has been diversifying into other sectors over the past few years, including power generation and distribution and airports among others.


This article appeared in The Edge Financial Daily, November 22, 2011.



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KLCI falls at mid-morning on external woes

KUALA LUMPUR (Nov 15): The FBM KLCI stayed in negative territory at mid-morning on Tuesday, Nov 15 in line with the weaker regional investor sentiment after the overnight fall at Wall Street and European markets.

Asian shares fell on Tuesday, as a rise in euro zone bond yields reflected lingering doubts about the ability of politicians in Italy and Greece to push through painful reforms to resolve their debt crises and win market confidence, according to Reuters.

Financial market turmoil stemming from the euro zone sovereign debt crisis has taken a clear toll on the region's economy, putting a firm cap on the single currency against the dollar, it said.

The FBM KLCI was down 1.92 points to 1,476.95 at mid-morning.

Losers led gainers by 277 to 177, while 209 counters traded unchanged. Volume was 935.72 million shares valued at RM247.10 million.

At the regional markets, Hong Kong’s Hang Seng Index was down 0.59% to 19,394.00, Japan’s Nikkei 225 lost 0.42% to 8,567.58, South Korea’s Kospi fell 0.49% to 1,893.46, Taiwan’s Taiex declined 0.31% to 7,502.14 and Singapore’s Straits Times Index shed 0.06% to 2,828.36.

Meanwhile, the Shanghai Composite Index edged up 0.08% to 2,530.85.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Nov 15 said that due to the US markets’ weak tone last night, there might be an initial decline for the local index, adding that some later nibbling activities could trim the fall in the afternoon session.

He said the Asian markets would gyrate wildly due to the weak tone for the overnight American markets.

“As such we advise clients to trade with a short-term time frame locally.

“It is unwise to join the recent penny stock activity as these stocks do not have any fundamentals and the companies are loss making. Take profits here swiftly,” he said.

On Bursa Malaysia, Degem was the top loser at mid-morning and fell 14.5 sen to 90.5 sen; Edaran lost 11.5 sen to 32 sen, SYF Resources fell 11 sen to 81 sen, Carlsberg and Ajinomoto eight sen each to RM7.01 and RM3.75, Bernas down seven sen to RM3.12, UMW and IOI Corp fell six sen each to RM6.70 and RM5.11, while Esso lost five sen to RM3.51.

DPS Resources was the most actively traded counter with 104.5 million shares done. The stock rose four sen to 35 sen.

Other actives included Tiger, DBE Gurney, PDZ, Sinotop, Scan Associates, CME and NextNation.

Among the gainers, DiGi added 74 sen to RM35.26, Amway 18 sen to RM8.98, Sunchirin 14 sen to RM1.49, Petronas Dagangan and Kulim 12 sen each to RM16.26 and RM3.59, Proton 10 sen to RM2.80, while F&N and Coastal added eight sen each to RM17.46 and RM2.01.



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