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KUALA LUMPUR: Eastern Pacific Industrial Corporation Bhd (EPIC) has mapped out a strategy
to enhance its presence as a key oil and gas services firm by expanding its port management
operations in Kemaman and business activities in fabrication.
EPIC chief executive officer Ramli Shahul Hameed said the group was pushing ahead with its
fabrication business via its unit EPIC Mushtari Engineering Sdn Bhd (EME).
He said the firm had put in bids for local fabrication jobs and in Brunei, which is its maiden
venture to the sultanate. “I am quite confident one or two jobs would be ours. This is the first
time EPIC is trying for Brunei. Estimated value of this Brunei bid is RM30 million.”
EME is involved in onshore and offshore minor fabrication, plant shutdown activities, and
maintenance and repair services. It holds several licences from national oil firm Petroliam
Nasional Bhd (Petronas), covering mechanical maintenance services, major and minor
construction work and onshore construction and fabrication.
It is also bidding for jobs with Carigali Hess Operating Company Sdn Bhd and ExxonMobil
Malaysia Sdn Bhd, where the tenders are estimated at between RM80 million and RM100
million.
Under the five-year business plan, EPIC aims to expand its industrial port in Kemaman to cover
up to 202.3ha by 2013. The port, operated by its 61%-owned Konsortium Pelabuhan Kemaman
Sdn Bhd (KPK), runs Kemaman East Wharf and the Liquid Chemical Berth.
EPIC also plans to enhance its berthing facilities as well as its rig maintenance services.
The company aims to double its port tonnage in five years from 3.9 million tonnes now. The
port, which can handle up to 6.5 million tonnes in the East Wharf, is under-utilised as trade has
slowed down in line with the global economic slump.
KPK had earmarked two parcels of land, known as Phase Three and Pulau Kuching, in the
industrial port area for development, said its general manager in CEO office Capt Khudzri
Mohamad.
Work on Phase Three would start in the third quarter of this year and EPIC could spend up to
RM80 million and take about a year to develop the area, said Khudzri.
Key customers for its industrial port include Perwaja Steel Sdn Bhd, Petronas Gas Bhd, See
Sen Chemical Bhd and Malay-Sino Chemicals Industries Sdn Bhd.
EPIC group finance and account senior manager Ahmad Mohd Yunus said the firm had planned
some RM100 million in capital expenditure for its fiscal year ending Dec 31, 2009 (FY09).
He said it may see a slight drop in revenue in FY09 given the financial malaise that had spread
around the world.
“However, company profits are likely to be maintained, if not be better than FY08, as we have
cleaned up our books and we could see good performance by our subsidiaries,” Ahmad said,
adding that the firm would not be making any more provisions.
EPIC reported a net profit of RM1.7 million for its fourth quarter ended Dec 31, 2008 (4QFY08),
which was hit by provisions of RM12 million to RM16 million for a subcontracting fabrication job
from a private firm.
Asked about the speculated privatisation plan of EPIC, Ramli said: “We are not aware of that.”
The Edge Financial Daily last month reported that EPIC’s major shareholder Terengganu Inc
Sdn Bhd (TISB), an investment vehicle of the state of Terengganu wanted to privatise EPIC.
The deal hit a snag following resistance from EPIC’s second-largest shareholder Ahmad Zaki
Resources Bhd (AZRB).
It was reported that TISB offered RM2.10 a share for the remaining shares of EPIC while AZRB
wanted RM2.50 apiece.
TISB owns 40% of EPIC and AZRB, 21.3%. AZRB directors, in response to a query by Bursa,
said it had no knowledge of the privatisation deal. EPIC rose three sen to RM1.25 yesterday.
This article appeared in The Edge Financial Daily, March 27, 2009.
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