SapuraOMV Upstream JV discovers hydrocarbons in NZ

https://www.thestar.com.my/business/business-news/2020/07/10/sapuraomv-upstream-jv-discovers-hydrocarbons-in-nz

https://www.thestar.com.my/business/business-news/2020/05/09/crunch-time-for-pnb

In 2017, PNB injected more than RM800mil into Velesto and in 2019 it invested RM2.68bil in Sapura. This is equivalent to a 3% of PNB’s total asset under management.

However, based on the last closing price of Velesto and Sapura at 16 sen and 9 sen on Wednesday, Velesto’s share price has dropped more than 80%, while Sapura plunged almost 70% since early last 2019.

Last month, the top management of Sapura took a 50% salary cut as part of the internal austerity measures to preserve its cashflow.

Jalil was appointed chairman of Sapura in January this year, which raised questions if the salary cut was part of PNB’s initiative in taking a more active role in its investee companies.

Under the Focus 4 initiatives, Jalil says PNB has introduced the “Stewardship Framework” to ensure the stability of its investee companies by promoting a performance-driven culture and improving the respective companies’ organisational health.

Under the programme, PNB will take a more active role as an investor, including a presence at boardroom level and working together with the management of its investee companies in driving their strategy.

“We want to be actively engaging companies, championing good corporate governance and exercise our shareholding by way of proxy voting, ” Jalil says.

Towards this end, PNB has set up Strategic Investment Council (SIC) that will be chaired by Jalil, consisting of all CEOs of PNB’s strategic companies.

Jalil says the SIC is aimed at aligning interests and reducing duplication where possible and serves as an avenue to share best practices.

The stewardship framework and asset diversification is an extension of the precious initiative STRIVE-15 to create value among its portfolio companies, and enhance risk management and organisational transformation.

Low returns for this year is expected as business and consumer activity have grinded to a halt due to the Covid-19 pandemic.

Zeti says PNB has to take a long-term view and focus on the fundamentals such as identifying a mega shift in the economy.

In the immediate term, Zeti says businesses are being heavily disrupted, which affects their earnings, increases unemployment and volatility in the financial market.

“In this bleak financial and economic conditions, there is however some room for optimism. While the necessary economic pain to contain the spread of the pandemic may be intense and immense, it will, however, be temporary.

“Once the economic shutdown is lifted, economic activity can be reignited. In the immediate timeframe, a recession may be felt before the recovery occurs. We, therefore, need to look beyond the immediate term, ” she says.

Zeti says the fund’s ability to perform this year will depend on factors such as no second Covid-19 wave, announced policies are effectively implemented, addressing the issues related to SMEs and rising unemployment, and how quickly consumer spending picks up.

“Of course, the performance of the companies that we are invested in is important. They are an important part of our effectiveness in being able to generate income and there are actions to be taken to raise the potential of these investments, ” she says.

Last quarterly report:

Item 21: Contingencies

The Company has, after seeking professional advice, treated the contract of a project as qualifying for
zero-rating under the transitional provisions of the Goods and Services Tax Act, 2014 ("GST Act"). The
Royal Malaysian Customs Department ("Customs") has however challenged this and takes the view that
the contract is not eligible for zero-rating. The amount being contested amounts to approximately RM29
million. The Company has appealed against this decision by Customs and the appeal has been fixed for
hearing before the Customs Appeal Tribunal on 21 and 22 May 2019.
Based on professional advice, the Company believes that it has strong grounds in its appeal against the
decision of Customs.

http://www.theedgemarkets.com/article/kvdt-phase-2-contract-be-rewarded-open-tender-says-minister?type=malaysia

@ erkongseng 谢谢你分享资讯！

@ erkongseng
Thanks for sharing!

@sephiroth May I know how to create email alert for future company announcement?

May I know how to create announcement alert for this stock? The current down trend is probably due to lower than expected earning for the second quarter financial result 2014, compounded by the prospective negative impact on the property sector in the 2014 budget.