Latest news with #RM397
Borneo Post
5 days ago
- Business
- Borneo Post
SMJ Energy secures RM 94 million in revenue from crude oil sale
KOTA KINABALU (July 24): SMJ Energy on Thursday announced the successful 10th sale of its crude oil from its Samarang Production Sharing Contract (PSC), generating an estimated RM 94 million in revenue. This latest transaction further solidifies the company's commitment to generating long-term, sustainable value from its operations. Since acquiring a 50% participating interest in the Samarang PSC on May 31, 2023, SMJ Energy's robust performance in the market continues to yield impressive results. Cumulatively, the company has generated an estimated RM1.9 billion in revenue to date, or RM397 million since early 2025 through strategic sales of its crude oil and gas from Samarang PSC. Samarang PSC, located offshore Sabah, is expected to provide continuous and significant revenue streams to SMJ Energy. Samarang PSC also produces and supply gas to Kota Kinabalu Industrial Park (KKIP) and three gas power plants in and around Kota Kinabalu, Sabah. The sale of crude oil from the Samarang PSC reinforces SMJ Energy's position as a key player in Sabah's energy sector. The company's operations support the Sabah State Government's goals of driving economic growth, strengthening local content development, and advancing a sustainable energy future.
New Straits Times
19-06-2025
- Business
- New Straits Times
HLIB raises MN earnings forecasts on new CLS contract
KUALA LUMPUR: Hong Leong Investment Bank Bhd (HLIB) has increased its earnings forecast for MN Holdings Bhd for financial year 2026 (FY26) and FY27. This follows a new contract award and a higher assumption for future job wins. The firm has revised its FY26 and FY27 earnings upwards by 6.8 per cent and 7.5 per cent, respectively, it said in a research note today. The firm also maintained its "buy" call for the company, raising its target price to RM1.88 a share from RM1.76 previously. This is based on 20 times the FY26 fully diluted earnings per share of 9.4 sen. This revision reflects a RM39.5 million contract secured for a cable landing station (CLS) expansion project and a higher projected FY26 contract win assumption of RM450 million, up from RM397 million. "We view this latest win as a strong validation of MN Holdings' execution capabilities and believe it strengthens the group's position to secure upcoming CLS-related packages at this site. "If successful, we estimate this site alone could contribute an additional RM130 million in contract opportunities," it said. HLIB noted that one of MN Holdings' major data centre projects is nearing completion, with progress at 80 per cent. In view of this, only minimal contribution is expected in the coming quarter. The firm expects a temporary quarterly decline in earnings before growth resumes in subsequent quarters as newly secured data centre projects begin to ramp up. "In our view, this short-term softness is already well anticipated by the market and is unlikely to pose significant downside risk to the group's share price, given its transitory nature," it added. Within the ongoing data centre tender pipeline, MN Holdings has up to five active projects involving a mix of Chinese and US players. HLIB expects more data centre-related infrastructure jobs to come onstream following Tenaga Nasional Bhd's (TNB) latest data centre electricity supply agreement signings, which have now increased to 6.4 gigawatts (GW) from 5.9GW in the fourth quarter of 2024. "We continue to see MN Holdings as a credible co-tender, supported by its solid execution track record, particularly in delivering CLS projects under tight timelines. "This capability has been evident in several of its recent data centre-related wins, many of which marked the clients' first data centre set-ups in Malaysia," it added. The firm noted that the company's order book remained robust at RM1.13 billion as of March 27, with approximately 90 per cent stemming from the substation engineering segment. Despite the strong order book, tender activity remains healthy, with jobs valued at around RM1.85 billion, over 70 per cent comprise data centre and TNB projects.
