By Chong Jin Hun
The Edge Daily (Malaysia)
PETALING JAYA: SAAG Consolidated (M) Bhd, an oil and gas (O&G) services firm, hopes to win its maiden O&G deal in Cambodia in two years, as the group attempts to capitalise on its existing power plant operations and an emerging petroleum sector in the fast-growing Indochina nation.
“We hope to secure our first deal in two to three years,” SAAG group chief executive officer Anand Subramaniam told The Edge Financial Daily. “Our power plants give us a foothold in Cambodia to tap the nation’s emerging oil and gas sector,” he said.
Petaling Jaya-based SAAG has existing foreign oil and gas projects in Brunei, Thailand and India, according to its website.
In Cambodia, the company has three power plants with a combined capacity of 20 megawatts. The first generator, capable of 7.5MW, was due to start running in Nov 2007, SAAG said in its filings to Bursa Malaysia.
SAAG’s planned O&G undertakings in Cambodia comes at a time when that nation’s economy is projected to expand about 8% this year, based on the International Monetary Fund’s (IMF) estimates.
IMF expects Cambodia’s annual income from oil, with a potential 700 million barrels of petroleum reserves, to rise to US$1.7 billion (RM5.56 billion) by 2021 from US$174 million in 2011.
The oil income forecast is based on on-going exploration off the coast of southern Cambodia by US-based Chevron Corp.
To boost its capital base, SAAG had last month proposed a private placement of up to a tenth of its enlarged issued and paid-up share capital to raise up to RM35.5 million to fund its working capital needs.
“It’s for the expansion of our ongoing and new oil and gas projects,” Anand said.
SAAG’s net profit in the third quarter to Sept 30, 2007 rose more than fivefold to RM7.8 million while revenue grew 53% to RM97.7 million. Cumulative net profit for the nine-month period more than tripled to RM22.8 million while turnover more than doubled to RM350.1 million.
The company told the exchange in June 2007 it had an estimated unbilled RM700 million order book which could last till 2009.
“We hope to secure our first deal in two to three years,” SAAG group chief executive officer Anand Subramaniam told The Edge Financial Daily. “Our power plants give us a foothold in Cambodia to tap the nation’s emerging oil and gas sector,” he said.
Petaling Jaya-based SAAG has existing foreign oil and gas projects in Brunei, Thailand and India, according to its website.
In Cambodia, the company has three power plants with a combined capacity of 20 megawatts. The first generator, capable of 7.5MW, was due to start running in Nov 2007, SAAG said in its filings to Bursa Malaysia.
SAAG’s planned O&G undertakings in Cambodia comes at a time when that nation’s economy is projected to expand about 8% this year, based on the International Monetary Fund’s (IMF) estimates.
IMF expects Cambodia’s annual income from oil, with a potential 700 million barrels of petroleum reserves, to rise to US$1.7 billion (RM5.56 billion) by 2021 from US$174 million in 2011.
The oil income forecast is based on on-going exploration off the coast of southern Cambodia by US-based Chevron Corp.
To boost its capital base, SAAG had last month proposed a private placement of up to a tenth of its enlarged issued and paid-up share capital to raise up to RM35.5 million to fund its working capital needs.
“It’s for the expansion of our ongoing and new oil and gas projects,” Anand said.
SAAG’s net profit in the third quarter to Sept 30, 2007 rose more than fivefold to RM7.8 million while revenue grew 53% to RM97.7 million. Cumulative net profit for the nine-month period more than tripled to RM22.8 million while turnover more than doubled to RM350.1 million.
The company told the exchange in June 2007 it had an estimated unbilled RM700 million order book which could last till 2009.
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