PETALING JAYA: PDZ Holdings Bhd, which has been in the news for its active stock trades and speculation of new shareholders emerging, posted a net profit of RM1.9mil compared with a loss of RM10.2mil previously for its fourth quarter ended June 30, which the company attributed to an active “revenue enhancement strategy”.
Nazim Rahman, PDZ’s new managing director, who is also the CEO of Pelaburan Mara Bhd (PMB), explained that the improved profitability of PDZ came about as a result of “deploying its vessels to more profitable routes and aggressive sales and marketing”.
“We have been single-minded in ensuring that PDZ returns to profitability,” he said when contacted.
PDZ, however, was still in the red for its full year although its net losses for FY14 were smaller at RM493,000 compared with RM13.8mil in FY13.
PDZ reported an operational profit of RM2.47mil for FY14 compared with operational losses of RM10.9mil previously.
It achieved a revenue of RM160mil in FY14 compared with RM199.2mil previously.
In its notes to the accounts, PDZ stated that following the surge in demand for cargo space in the last few months of FY14, it expects the high utilisation rate to continue, at least for the next few months. But the company did concede that overcapacity is likely to persist during the year and that “the softening of freight rates is the main challenge facing shipping lines”.
The company also said that it was embarking on a transformation plan to reduce overall costs and to enhance and expand existing businesses while exploring the new businesses.
PDZ, which is a container shipper, saw the entry of PMB in April, with the latter buying a 28% stake, mostly from the company’s major shareholder Tan Sri Robert Tan.
PDZ was to become PMB’s main oil and gas vehicle but new developments has led to PDZ possibly seeing the entry of a new shareholder to drive the company’s oil and gas thrust.
It is reported that the new shareholder could take the form of veteran corporate player Tan Sri Halim Saad, who is also linked to Sumatec Resources Bhd, which is seeking to establish itself as an oil and gas exploration and production operator.
PMB had paid around 18 sen per share for its PDZ stake in the last week of April this year and was sitting pretty with a hefty paper gain just months later, considering that PDZ last traded at 30.5 sen.
Nazim declined to comment on this specific speculation, but said: “We are finalising the deal as previously announced to Bursa Malaysia and will make the announcement once the agreement is in place”.
On Aug 21, in response to media reports, PDZ said that it had been approached by several parties who had expressed an intention to purchase a stake in the company.
Meanwhile, Nazim reiterated that operationally, more initiatives have been taken to strengthen PDZ’s earnings.
“Another strategy moving forward would involve further asset optimisation and reviewing the cost structure. We are in the midst of a technical and financial audit as a basis for future decision making,” he said.
He added: “PDZ’s current business will remain cyclical but with the planned injection of new assets, especially in the oil and gas sector, we are confident that earnings will grow significantly.”
Source : The Star Online (Business News) - 01 Sept 2014