PetOne ... Apr11

Petrol One Resources Bhd, formerly known as Changhuat Corp Bhd, aims to be back in the black by FY12 ending June 30 on the back of more contracts as it expands its floating oil storage business.

The company expected to own five very large crude carriers (VLCCs) by FY12, starting with the acquisition of two vessels by 3Q11.

They are in talks to secure a long-term charter for its second vessel soon. The vessels would be funded partly through borrowings and through a proposed rights issue. The private placement proposed by the company earlier 2011.

Over the last three financial years, Petrol One has seen losses, although it is noteworthy that the figures have been narrowing. For FY10, it posted a net loss of RM2.7 million on revenue of RM31 million.

Based on its most recent financial statements for 2Q ended Dec 31, 2010, the company had a gearing ratio of 3.64 times.

Part of the proceeds from the rights issue will be used to pare down its gearing.

In September 2008, the company’s wholly-owned unit Changhuat Manufacturing Sdn Bhd completed the acquisition of 63% equity interest comprising 12.6 million shares in O&G company Arus Dermaga Sdn Bhd for RM45 million.

In 2009, it secured a RM96 million contract with Coastal Oil Singapore Pte Ltd for the provision of a 240,000-tonne VLCC at the Port of Tanjung Pelepas, Johor, for storage of crude oil, fuel oil or alternatively fuel oil blend stocks over 36 months.