KUALA LUMPUR — KUB Malaysia Bhd plans to invest US$80 million (RM343.2 million) with Mabanaft Pte Ltd in the joint development ownership and operation of a refrigerated liquefied petroleum gas (LPG) terminal at Westport Klang, Selangor.
Group managing director Datuk Abdul Rahim Mohd Zin said the investment will result in the group being the project’s majority shareholder (51% share).
“We would need roughly six months, or (until) the end of the year, to undertake the feasibility study and once we have determined that, we will made the financial investment decision,” he said after the group’s annual general meeting here yesterday.
Abdul Rahim said the memorandum of understanding (MoU) with Mabanaft became effective on May 22 and will remain in effect until Dec 31, unless the parties decide to extend or
He said for 2017, the group has allocated RM2.5 million in capital expenditure to construct an additional LPG pipeline, and another RM8 million for the LPG supply and dealership.
The MoU agreement was made with Manbanaft, a subsidiary of Marquard & Bahls specialising in wholesale
procurement, supply and trading of LPG worldwide.
The purposes of this MoU are to construct, own and operate a refrigerated LPG terminal with a capacity of 2 x 25,000 tonnes of LPG; and to procure, supply and trade of LPG in regional markets.
For the food sector, Abdul Rahim said the group will continue to focus its business expansion activities at strategic locations identified within Peninsular Malaysia.
“Loss-making outlets will be relocated to areas with high foot traffic.
“We will also enhance customer service levels by providing better training to service employees as well as renovating and upgrading the existing outlets,” he said.
The managing director said the group intends to open another twenty-five A&W outlets within the next three years, bringing the total to fifty-two by 2019.
“We will allocate roughly RM25 million for the 25 new outlets within the next three years,” he said.
KUB announced its financial results for the first quarter of its financial year ending 31 Dec, 2017 (1Q17) with revenue of RM148.6 million, a 21% increase compared to its corresponding quarter of its previous fiscal year (1Q16).
The group also reported a pretax profit of RM10.5 million and profit after tax of RM8 million, surpassing the 1Q16 results by 18% and a staggering 41% respectively.
KUB’s robust start to the financial year was made possible by the strong performances of the group’s energy and agro sectors.
The energy sector’s topline grew by 48% to RM110.6 million as a result of the higher average contract price and improved sales volume arising from the increased demand from its industrial and bulk segment customers.
(US$1 = RM4.29)