FBMKLCI 1551.10 DJ-21.87 CRUDE OIL101.42 RM2.964

Petronas reported net profit attributable to shareholders of US$17.46 billion in the financial year ended March 31, 2011 (FY11), which was a 50% increase from the US$11.64 billion in FY10.Revenue increased to US$76.82 billion, up 26.1% from US$60.92 billion. President and CEO  Datuk Shamsul Azhar Abbas said Petronas will be spending RM300 billion in capital expenditure for the next five years, this was an upward revision from the RM250 billion mentioned a few months ago. For the fourth quarter, its earnings increased 49.8% to US$3.49 billion from US$2.33 billion the year before on the back of higher realised prices for petroleum products, crude oil and condensates, as well as other energy commodities.  Its revenue increased 22.8% to US$21.45 billion from US$17.47 billion.

Latexx Partners  accepted a lower offer of RM1.25 billion from the YTY Group of companies in a proposed merger instead of RM1.365 billion earlier. The glove maker said 30% of the purchase consideration or RM375 million would be in cash. The balance of RM875 million would be in the form of 350 million new shares at an issue price of RM2.50 per share.

MAA Holdings has obtained the Minister of Finance’s (MoF) approval to dispose of its 100% stake in Malaysian Assurance Alliance Bhd (MAAB) for RM344 million to Zurich Insurance Company Ltd.

Tenaga Nasional Bhd (TNB) is buying power from Singapore-based PowerSeraya Ltd, a unit of YTL Power International Bhd, as a shutdown of Petroliam Nasional Bhd-owned gas production platforms for maintenance work made worse a dwindling gas supply situation. Chief executive officer Datuk Seri Che Khalib Mohd Noh said in a reply to a StarBiz query that the purchase was made to ensure supply security. “We're buying 180MW only, which represents 1.5% of total demand,” Che Khalib said. The report said the purchase was made following an approach by TNB in April to Singapore's Energy Market Authority and the generating companies for electricity supply needed to tide over capacity shortages “for a few months”. This was caused by natural gas feedstock shortages faced by TNB's power stations due to the maintenance shutdowns, which could further reduce by 30% in the May to June period.

The “very substantial transaction” that United U-Li Corp Bhd (Ulicorp) is expected to announce tomorrow is likely to be the signing of a deal with a foreign party. The management has remained tight-lipped about the details, but observers believe that the agreement will be for a major joint venture. In addition, sources close to the company have ruled out the possibility of the company being taken private. The proposed joint venture is primarily to open doors for business expansion, and not so much about funding, because the company's balance sheet is fairly sturdy.”

UOA Development Bhd closed at RM2.59, one sen lower than its reference price of RM2.60 per share, after the stock made its debut on the Main Market of Bursa Malaysia yesterday.chief operating officer (development division) David Khor said UOA would work towards integrating more green building components in its commercial development. On its recent acquisition of a RM50mil land in Sri Petaling, Khor said the company planned to build high-end condominiums there but the details had yet to be finalised. “The company has about RM8.6bil worth of properties to be launched over the next seven to 10 years,” he said. Khor said about 70% of the properties developed by UOA were for commercial purposes while the rest were residentials. “We hope the ratio will change in two years, with residential projects contributing more (to the volume),” he said.

With the emergence of Malaysia’s pilgrim fund board Lembaga Tabung Haji (LTH) as one of major shareholders of Faber Group Bhd, chances of the latter securing renewal of crucial contracts and new projects, especially in the local and the United Arab Emirates (UAE) markets, will seem brighter now. According to analysts, investors over the past few months have been particularly concerned about the uncertainty of Faber’s 15-year concession in providing health support services to government hospitals in Malaysia being renewed. “But with LTH backing now, the prospects of the concession being renewed have certainly improved, and this would certainly enhance investor confidence in the integrated facilities management and property solutions company,” MIDF Amanah Investment Bank Bhd analyst Belford Chang told StarBiz.