JOHOR BARU, May 18, 2015:
State investment company Johor Corporation (JCorp) today announced an allocation of RM468.16 million as capital expenditure to its fully-owned unit Kulim (M) Bhd for oil and gas (O&G) exploration activities.
The amount will be used to finance Kulim’s venture into the O&G sector at Sumatra, Indonesia.
Kulim, via its subsidiary, Kulim Energy Nusantara Sdn Bhd, last year acquired 60% equity in PT Citra Sarana Energi (CSE) worth RM462.68 million.
CSE, an investment holding company, is involved in the oil and gas field exploration and development in South-West Bukit Warisan Block, Central Sumatra, Indonesia.
JCorp president and chief executive officer Datuk Kamaruzzaman Abu Kassim today said the O&G industry is something the company wants to explore through Kulim.
“We believe it is a right business decision,’’ he said this after the announcement of the JCorp’s 2014 results. Present to announce the results today was Johor Menteri Besar Datuk Mohamed Khaled Nordin, who is also JCorp chairman.
Kamaruzzaman said the O&G activities would start contributing to Kulim’s revenue and profit by the end of 2016.
“From 2019 onwards, the O&G activities would hopefully contribute 50% to the total group revenue,” he said, adding that currently the plantation, healthcare and property development sectors were the main contributors for JCorp’s yearly earnings.
Kamaruzzaman said it was still early to reveal the potential output figures from the O&G venture in Sumatra, but will make the necessary announcements via Bursa Malaysia soon.
On the announcement of the results for the financial year ending December 31, 2014, JCorp registered a sharply lower RM627 million in pretax profit for the group, when compared to RM1.32 billion in 2013.
JCorp’s charted RM4.69 billion in revenue, slightly lower than RM4.73 billion in 2013.