ENRA TO POSITION AS “COST SAVER” WITHIN THE OIL & GAS INDUSTRY
Friday, 22 July 2016/ TheSunDaily
KUALA LUMPUR (Aug 11): ENRA Group Bhd is positioning itself as a “cost saver” within the oil and gas industry to reap the benefit as oil and gas (O&G) players are cutting cost of operation. According to ENRA executive deputy chairman Datuk Kamaluddin Abdullah, the group is actively working with various established oil and gas firms to provide them with cost optimisation solution. “We are offering them with assets integration services as well as maintenance of assets against the current backdrop,” he told reporters after the company's annual general meeting (AGM) today. To strengthen the company's competitive edge, he said ENRA is also looking for partners to come out with more new ideas and solutions that could help the industry players.
The sharp fall in crude oil price since late 2014 has hit hard on the O&G players, which saw majority of oil firms are cutting down their capital expenditure to prevent them from bleeding. For national oil giant Petroliam Nasional Bhd (Petronas), it planned to reduce its capex and operational expenditure (opex) this year between RM15 billion and RM20 billion in due to the low crude oil prices. While every O&G players are tightening their belts, Kamaluddin said the cost optimisation can only be done with the mutual agreements from clients and service providers. “This is not purely about cost cutting as far as the industry is concerned, but it is about managing the down cycle.
“To do so, both the service provider and clients have to work hand in hand. ”The client cannot keep asking their service provider to cut (their cost), eventually service provider will be done and no one will be there to provide with the service,” he explained. ENRA has an ambition to become full fledged oil and gas player and growing its market capitalisation to RM5 billion in five years On this, Kamaluddin shared ENRA is looking to acquire assets including oil services companies with stellar track record to expand their business.
“At the current cycle, I think we have to be prudent and not mad rush for business expansion,” he said, adding the group is in constant talks with several parties but nothing firmed up. He stressed that the group will focus in acquiring services company in the upstream and downstream segment but will not involved on exploration and production segment. Currently, ENRA has an orderbook of RM100 billion for its oil and gas business segment. On its property segment, Kamaluddin said the company still has unbilled sales and unsold sales amounting to RM49 million, mainly from its Shamelin Perkasa project in Cheras here. “We are not looking for any big land bank at the moment. Our priority is to find assets that could monetise in the near term, ” he said.
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