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ENRA UNIT BUYS OIL TANKER FOR RM39M CASH

https://www.theedgemarkets.com/article/enra-unit-buys-oil-tanker-rm39m-cash

Monday, 14 Oct  2019

KUALA LUMPUR (Oct 14): Enra Group Bhd said its unit is acquiring a 15 year-old oil and chemical tanker for US$9.3 million or RM38.87 million cash.

 

The group announced to the stock exchange today that its subsidiary Enra SPM Labuan Ltd signed a memorandum of agreement with Copenhagen-based Maersk Product Tankers A/S, for the purchase of the tanker known as Maersk Edgar.

 

Enra SPM Labuan is a wholly-owned subsidiary of Enra SPM Sdn Bhd, in which Enra group holds a 60% stake, while SPM Terminals Pty Ltd 40%.

The double hull oil and chemical tanker has a net tonnage of 10,216 tonnes, Enra said.

 

Its purchase will be financed via a combination of internally-generated funds and bank borrowings. Enra group’s portion is US$5.58 million or equivalent to RM23.32 million, based on its effective shareholding in the subsidiary.

Enra said the proposed acquisition is in line with its core business in the provision of cost-effective storage and offloading solutions to oil and gas fields.

 

It is also part of the subsidiary’s business strategy to expand its offshore services and enhance its capabilities in offshore oil and gas operations.

“The ownership of the vessel will also position Enra SPM Sdn Bhd and Enra SPM Labuan to be more competitive in pursuing new contracts in this core business area,” it added.

 

The proposed acquisition is not expected to have any material effect on the earnings of the group for the financial year ending March 31, 2020 (FY20).

 

Shares of Enra were not traded today. The stock was last done at RM1.20 on Friday (Oct 11), for a market capitalisation of RM161.90 million

 

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