“We don't think the capex, which involves the construction of
warehouses and liquefied petroleum gas (LPG) terminals, is significant as it is
within PetDag's capacity.
“We are already looking at ways to fund this capex,” chairman Datuk Wan Zulkiflee Wan
Ariffin told reporters after the
company's annual general meeting.
He said the company needs time to nurture the downstream
acquisitions to reach critical mass, before it can see significant contribution
to its bottomline.
“We are anticipating this to be a midterm to long term
investment before it becomes substantial.
“If you look at the current investment, it is only about 4% of
the total assets of the company,” Zulkiflee said, adding that it would need
about four to five years to achieve its target.
Earlier this month, the company said it would be buying six
downstream companies belonging to its parent, Petronas Nasional Bhd, in the Philippines, Vietnam, Thailand and Malaysia for
US$62mil (RM197.3mil).
“The Malaysian market has become kind of saturated for PetDag,
and I think what we are doing is to set the foundation for the next phase of
growth for PetDag.
“The companies we have acquired are companies within our core
competencies like LPG, lubricant and aviation,” Zulkiflee said.
With the acquisition, PetDag would be extending its reach
further into the Asean region, and would be focusing on its post acquisition
integration efforts to create more value within PetDag's group of companies.
“I think we would focus a lot on what could be done in the next
few months, post acquisition.
“Detailed plans are already in place and also people have been
assigned to what needs to be done. At the moment, we are just focusing on the
six companies that we have acquired,” he said.
Zulkiflee also said the company would continue to look for
opportunities in the Asean region while focusing on its post acquisition
efforts.
For its financial year ended Dec 31, 2011, the retail arm of
Petronas recorded a net profit of RM898.9mil over a revenue of RM22.2bil.
The company currently operates more than 970 Petronas stations
nationwide commanding about 31% market share of the local retail market.
The LPG, petrol, kerosene and diesel marketer also commands
about 59.9% of the commercial market, 55% of the LPG market and 24% of the
local lubricant business.
CHOONG
EN HAN
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment