CORPORATE INFORMATION / CHAIRMAN'S STATEMENT

CHAIRMAN'S STATEMENT

Dear Shareholders,

On behalf of the Board of Directors of ENRA Group Berhad (“ENRA” or “the Company”) (the “Board”), I am pleased to present the Annual Report and Audited Financial Statements for the financial year ended (“FYE”) 31 March 2018.

I joined the Board in June 2015, just when oil & gas prices had fallen substantially and the property market had slowed down - respectively the causes and symptoms of a bearish economy. We were cognisant of the potential impact such an environment would have on businesses and therefore applied a conservative approach in running the Group.

 

We came across many investment opportunities (organic and acquisitive) in property development, oil & gas, and others during these three years but decided not to pursue many of them. The prudent and cautious practice of the Management due to the less than optimal business environment meant that a large pool of those opportunities did not pass our feasibility and risk tests.

 

Today, I am proud to say that we have successfully weathered those three years and have come out with a strong balance sheet and stable businesses. As a reflection of our discipline and drive we have, amongst others:

  • Set up a full-fledged but lean Management team;
  • Built a sizeable downstream specialty chemicals business in the form of ENRA Kimia Sdn. Bhd.– generated RM43.3 million in revenue for FYE 31 March 2018;
  • Offered and provided our maiden floating storage and offloading solution for one of Petroliam Nasional Berhad’s gas fields in Myanmar – an approximate USD48 million contract over the next four years;
  • Sold 96.5% of all units in Shamelin Star despite the soft property market; and
  • Neared completion of the divestment of our investment properties which we believe has limited growth potential in their current form – which will raise RM85.15 million in proceeds.

Most of all, I am proud that our businesses were built on quantitative and qualitative fundamentals. All our revenue has been generated from the open market or tenders, which I believe also demonstrates our competitive drive.

 

On behalf of the Board, I would like to thank the current Management and the staff for their commitment and continued dedication towards the Group throughout the year. We are also thankful for the continued support and positive alliance from our various stakeholders and, last but not least, the continuing support of our shareholders.

 

We begin the next financial year with a healthy balance sheet and a strong cash position that we anticipate will increase substantially over time. The Group’s Board and Management has the experience, knowledge, talent and tenacity to take another leap of growth, and I look forward to what may come.

 

 

Thank you.

 

Datuk Ali bin Abdul Kadir

Chairman

27 June 2018

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