Its subsidiary, Arus Dermaga Sdn Bhd (ADSB), is talking with several companies to provide storage facilities for oil and gas (O&G) products and other related services.
The company was looking to secure at least two contracts within the next 12 months but declined to divulge more details.
The shareholders also approved Changhuat’s proposed disposals of the entire stakes held in Changhuat Plastic Industries (Senai) Sdn Bhd and Changhuat Plastic Industries Sdn Bhd to Wong Koon Sang and Lim Chung Kian for RM23.10mil and RM5.08mil cash respectively.
Set up in May 2006, ADSB is one of six companies approved by the Marine Department under the Transport Ministry for ship-to-ship transportation of oil within the Johor Port and Port of Tanjung Pelepas areas.
It has a five-year contract, expiring 2012, to provide an offshore facility for the storage of fuel oils or fuel oil blend stocks of 240,000 tonnes per month to commodity trader Glencore.
The profit margin in the manufacturing business had declined since 2002 due to the softening demand globally and increasing market competition especially from plastic injector moulders from China and Vietnam.
For the first quarter ended Sept 30, Changhuat’s net loss narrowed to RM207,000 from RM379,000 in the previous corresponding period while revenue grew 32% to RM17.65mil against RM13.39mil before.
Meanwhile its subsidiary Arus Dermaga Sdn Bhd has entered into a floating storage agreement with Noble Clean Fuels Limited for the provision of a 260,000-metric tonne very large crude carrier at Port Tanjung Pelepas, Johor, for storage of oil products for a minimum of 30 months starting Feb 28, 2010. The contract value is about RM170 million.
3 hours ago
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