24 May 2012

Ramunia Holdings (PN 17) expects to complete regularisation plan by end of July after obtaining approvals from shareholders yesterday, pre-tax profit of at least RM 28 million expect this year - Chairman Datuk Azizan Abd Rahman

(RAMUNIA opening stock price today (24.5.2012) was 39 sen)

Ramunia Holdings Bhd, partly owned by Lembaga Tabung Haji, expects to complete its regularisation plan by end-July, after which it hopes the stock exchange will remove its Practice Note 17 (PN17) status.

The offshore oil and gas fabricator also expects to return to the black this year with a pre-tax profit of "RM28 million to RM29 million", chairman Datuk Azizan Abd Rahman said.

PN17 denotes companies that face financial difficulties and need to regularise their accounts to help justify their existence as ongoing business entities.

Ramunia yesterday obtained all the approvals needed from shareholders to implement its regularisation plan.

It involves the company buying a fabrication yard in Pulau Indah, Port Klang, from Oilfab Sdn Bhd for RM83.6 million.

"Now that we have got the approval, we will proceed as scheduled. We expect to have no further hitches, and hopefully (we) will complete (the plan) by end of July. Then, we will apply to Bursa Malaysia (for PN17 upliftment)," Azizan told reporters after the company's annual and extraordinary general meetings here yesterday.

The chairman was "optimistic" that Bursa Malaysia would lift the status as Ramunia would have already complied with all the conditions set by the stock exchange.

Ramunia slipped into PN17 in March 2010 after selling its Teluk Ramunia fabrication yard to Sime Darby Bhd for RM530 million in cash.

It submitted its regularisation plan in July last year, and Bursa Malaysia approved it in January.

Ramunia currently has projects valued at RM208 million in hand, either through letters of award or intent.

Its floating production, storage and offloading unit has yet to secure any international contracts but is pursuing three projects from three oil companies in Malaysia, the company's chief executive officer Nor Badli Mohd Alias said.

Part of the regularisation plan involves a rights issue that is expected to raise between RM106 million and RM150 million. It may also seek bank borrowings.

About RM62 million of the fund will be spent to upgrade the Pulau Indah fabrication yard, which will take up to 18 months to complete.

The move is considered crucial to increase its competitiveness in the industry, Nor Badli said.

Source: www.btimes.com.my

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