November 10, 2014

Carimin Petroleum Debuts On Bursa Malaysia At RM1.12

KUALA LUMPUR, Nov 10 -- Carimin Petroleum Bhd made its debut on the main market of Bursa Malaysia on Monday at RM1.12, for a two sen premium.

A total of 2.38 million shares were traded and from the initial public offering, raised RM66.8 million in proceeds.

Managing Director Mohktar Hashim said he was happy with the shares over-subscription of 22.1 times, indicating the market's confidence towards the company's strong fundamentals.

"We are pleased with the opening price. It validates the over-subscription that we had early on and shows investors' confidence in our potential," he told a press conference after the listing ceremony here.

Carimin Petroleum provides topside major maintenance (TMM) and hook-up and commissioning (HUC) works to the oil and gas (O&G) sector, specialising in offshore engineering, scheduled/work pack development and procurement.

When asked if the current downtrend in the global oil price would affect its business, Mohktar said there was no indication of a slowing down just yet.

He said the nature of Carimin Petroleum's business, which is not purely reliant on capital expenditure, but also operating expenditure, has given it an edge against the current backdrop of weakening oil price.

"I do not think it is going to affect us as maintenance and HUC works need to continue. It is something that the O&G players will need to do as these projects are all production-driven.

"They will still need to look at the integrity of the offshore assets and facilities to ensure that safety is not compromised," he added.

The company had previously announced that it had bid for three new projects with an estimated value of RM800 million from local players, and given its excellent track record, stood a fairly good chance of winning them.

Meanwhile, Mohktar announced that the company recently secured an early start to provide TMM services to Petronas Carigali, complementing the earlier-awarded HUC work orders under Petronas' Pan Malaysia Integrated HUC and TMM contract.

"The new work orders will boost our total work value beyond the current RM900.8 million for HUC and manpower supply, which are scheduled for delivery until 2018," he added.