THE entry of Ekuiti Nasional Bhd (Ekuinas) into Tanjung Offshore Bhd as a new shareholder recently has been viewed by market analysts as a major boost for the latter.
For one, it provides the oil and gas services and equipment provider easier access to funding.
Ekuinas, being a government-linked private equity fund, is also said to be able to provide the right connections for Tanjung to secure more lucrative deepwater projects in the coming future, and this could help strengthen the company’s position as a formidable player in the oil and gas industry.
Tanjung managed to gain a marginal one sen to close at RM1.20 per share on Thursday after a momentary suspension in the morning prior to the announcement of the entry of Ekuinas as a shareholder.
Tanjung posted a net profit of RM3mil in the first quarter ended March 31.
This was a decline of about 70% year-on-year. Revenue for the period also slid to RM127.5mil compared with RM186.9mil a year ago.
Nevertheless, the company is expected to post stronger earnings in the subsequent quarters, as contributions could flow from the new contracts awarded to its three new vessels.
Meanwhile, the company is also on track in expanding its fleet capacity, with plans to buy four to five more new vessels – mostly platform and utility – this year. — By Cecilia Kok
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