EASTERN Pacific Industrial Corp Bhd (EPIC) has diversified into two major projects in a bid to broaden its income base and boost its financial performance.

The two projects in Terengganu are a sludging management job in Kerteh that began this week and a property development project in Dungun that started earlier this year.

The sludging management project is being undertaken by a subsidiary Natuream Enviro-Services Sdn Bhd, EPIC chief executive officer Md Suhaimi Hussain said after the company's AGM in Kuala Lumpur on Friday.

“We bought a mobile plant to do proper sludging management. All this while crude oil sludge was disposed of. With our technology, we can recover the crude oil from the sludge, treat it and dispose of the sediment,” he said. The technology allows the company to quantify, remove and separate sludge into oil, water and sediment safely and in a shorter time.

In addition, the profiler for oil tank sludging quantification provides an accurate tank survey while the tank is still full. The three-phase sludge separation system also enables recovery of high quality oil of up to 95% of free oil present in sludge.

“The sludging technology will translate into revenue contribution to EPIC. EPIC is also looking for other projects within Malaysia and overseas,” Suhaimi said.

EPIC is also developing a three-phase business project centre on 11 acres in Paka, Dungun. The company has invested RM22mil in the first phase, comprising 26 two-storey and 49 three-storey shop-offices, and a bazaar. The second phase is the Paka business centre and the final phase would either be a hotel or serviced apartments.

“We have yet to determine how the entire project will be or when the second phase would begin as it would depend on the market demand,” Suhaimi said. “However, response has been good as 60% of our shop lots have already been booked.”

The first phase is expected to be completed within two years.

EPIC chairman Datuk Wan Abd. Muttalib Wan Musa Embong said the new venture in property development was expected to start contributing to the company's bottom line in the current financial year ending Dec 31, 2003. The company presently has 130ha land bank.

He also said that the company was now negotiating with the government and the private sector for more land bank. On its supply base operation, EPIC is investing RM19mil to increase its related facilities such as general warehouse, storage warehouse, explosives store, open yard and other facilities.

“Our petroleum supply base remains the major contributor to the group's performance,” Muttalib said.

The group posted a 18% dropin pre-tax profit to RM20.2mil for last year compared with RM24.5mil in 2001. The company also recommended a final gross dividend of 7% (2001:7%) per share, less 28% income tax, amounting to RM4.1mil for last year.