Ahmad Zaki Resources

Ahmad Zaki Resources

Postby winston » Fri Jan 22, 2016 4:20 pm

Ahmad Zaki targets to replenish its construction order book by RM800mil to RM1bil this year, including the Mass Rapid Transit (MRT) line 2.
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Re: Ahmad Zaki Resources

Postby winston » Fri Jan 22, 2016 4:27 pm

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AZRB targets RM800mil to RM1bil in new construction contracts

BY SHARIDAN M. ALI

Roslan: ‘We are excited as EKVE is our first toll concession and hopefully it is not the only one.’

AHMAD Zaki Resources Bhd (AZRB) targets to replenish its construction order book by RM800mil to RM1bil this year, inclusive of the highly anticipated job in the development of the mass rapid transit (MRT) line 2.

Group chief operating officer Datuk Roslan Jaffar says although the construction industry outlook is robust this year, supported by a couple of developments of urban rail network in the capital, he admits this target is lower than what was recorded last year, when the company clinched its first toll concession job, the East Klang Valley Expressway (EKVE), worth RM1.55bil.

AZRB’s order book stands at RM3.47bil as at Sept 30, 2015 that should keep the company busy for the next three to four years.

“We think that’s a reasonable replenishment target for this year as about RM600mil worth of jobs are already within our grasps; it will be just a matter of time announcing them accordingly,” he tells StarBizWeek.

Roslan, who is also an executive director, believes the company stands a good chance to win one of the viaduct packages in MRT line 2, based on its proven track record in MRT line 1.

“We have submitted our bid and being a contractor in MRT line 1 gives us a bit of advantage as our knowledge and technical expertise have been tested.

“Although there are more packages to be offered in MRT line 2, to win one is already an achievement,” he says.

Roslan says AZRB is also keen to bid for light rail transit (LRT) line 3, depending on the scheme of the line development which he believes will be quite similar with MRT.

“Other than infrastructure, we are quite positive on the outlook of the sector and will be on the lookout for other types of construction jobs such as hospitals and office buildings,” he says.

AZRB has delivered its portion of job in the MRT line 1 package V6 valued at RM700mil.

Tendering process for MRT line 2 began in October last year, leading to its groundbreaking in the second quarter of this year.

Meanwhile, the dishing out of major work packages for the RM9bil LRT 3 project will also probably start from the beginning of the second half of this year.

Busy year ahead

On its ongoing projects, Roslan expects some of AZRB’s notable jobs to pick up steam this year.

“For example, the EKVE, which started initial ground works in September 2015, will be in full swing this year as the company expects to receive its first drawdowns from Government-support loan and sukuk by end of this month.

“EKVE’s capital expenditure is projected to be around RM300mil to RM500mil this year. We are excited as this is our first toll concession and hopefully it is not the only one,” he says.

For EKVE, AZRB’s debt financing facilities include a Government-support term-loan facility of up to RM635mil.

EKVE has also signed a guaranteed sukuk murabahah facility agreement with Bank Pembangunan Malaysia Bhd and Maybank Investment Bank Bhd for a guaranteed Islamic medium-term notes facility of up to RM1bil.

The 35.5 km EKVE is the eastern and final uncompleted route of the Kuala Lumpur Outer Ring Road. The expressway will provide a bypass route and enable motorists from the southern part of the Klang Valley like Cheras, Bangi and Subang to travel to Selayang and Gombak and vice-versa without having to go through the city centre. It will also serve as a bypass route around Kuala Lumpur for inter-regional traffic from Karak Highway.

Additionally, Roslan reveals that the company’s RM673mil construction job at the old Malaysian Airline System Bhd building in Jalan Sultan Ismail will begin this year, as related issues have been ironed out.

The project was awarded to AZRB in October 2012 by Permodalan Nasional Bhd. This job requires AZRB to build a 50-storey hotel tower in the heart of Kuala Lumpur.

Roslan says it will also start building the RM386.65mil apartment and office block along Jalan Raja Muda Musa, Kampung Baru. The job was awarded by Uda Legasi Sdn Bhd last September.

The development consists of a 47-storey building containing 639 apartments, a 29-storey commercial office building and a level of basement carpark.

AZRB is also part of the consortium alongside Salcon Bhd and MMC Corp Bhd that have been awarded an RM993.8mil contract to build the Langat 2 water project in 2014.

Apart from pure construction jobs, AZRB has several property development under its belt and they are most likely to use its in-house contractor as well.

The latest one is R3-4 in Kwasa Damansara which was awarded to AZRB just about two about months ago.

Project R3-4 covers 3.91 acres of freehold land. The proposed development will consist of 188 units of 162 high-rise twin tower condominiums and 26 units of garden villas.

Apart from that, Roslan hopes to launch the residential units in Paka, Terengganu, dubbed Tiara Paka, this quarter.

Non-construction division

AZRB’s oil and gas business currently contributes the highest chunk of its bottom line, surpassing its construction business which reigns higher in terms of revenue.

“Obviously, our oil and gas business in providing supply bases to the oil majors has higher margin. Our Tok Bali supply base in Kelantan is only expected to be ready by middle of this year. It gives us a lead time to see improvement in the global oil price.

“Having said that, it is also important to note that there are already exploration activities in that area and it only makes sense for the oil majors to utilise a nearer supply base as compared to Kertih or Songkhla,” he says.

AZRB acquired 51% equity interest in Matrix Reservoir Sdn Bhd (MRSB) for RM55mil last November. With the acquisition, MRSB becomes a subsidiary of the AZRB group.

MRSB is the owner of TB Supply Base Sdn Bhd (TBSB), which is the operator of the Tok Bali Supply Base in Kelantan.

The supply base is well positioned to offer integrated logistics services to production-sharing contractors and oil and gas service companies operating in the North Malay Basin, Malaysia-Thailand Joint Development Area and Commercial Arrangement Area between Malaysia and Vietnam.

“This will only complement our supply base operation in Kertih as it already has the advantage of servicing oil majors in that area as well,” he says.

Another business division AZRB is growing is its palm oil plantation in Kalimantan.

Roslan says that currently, the division has a total of 7,100 ha of planted area but will expand it to 10,000 ha over the next two years.

“Currently, we are still in the investment period. We expect this plantation division to contribute positively to the group by 2017.

“In the mean time, if the right opportunity comes along, of course we are interested to acquire more plantation areas,” he says.

Path, prospects and profit

Roslan explains that AZRB at the end of the day is essentially a construction company.

“The ‘diversification’ now is to derive better value from our construction expertise, hence the property development and also toll concession,” he says.

He describes the plantation and oil and gas divisions as cushions for the company to be more defensive because the construction business can be quite cyclical in nature.

“Yes, construction jobs have been good for the past six years but our experience from 2002 to 2004 has taught us to be more prepared,” he says.

AZRB’s net profit for the nine-month period ended Sept 2015 was RM17.4mil compared with almost RM10mil in the same period in 2014.

“And for this year, with the development of our notable construction jobs, revenue is expected to jump sizeably,” he says.

Source: The Star
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Re: Ahmad Zaki Resources

Postby winston » Fri Jan 22, 2016 4:32 pm

30 November 2015

Ahmad Zaki 3Q profit up on unrealised forex gain


KUALA LUMPUR: Ahmad Zaki Resources Bhd (AZRB) recorded a 137.8% gain in net profit to RM4.43mil for the third quarter ended Sept 30, 2015 from RM1.86mil a year ago, mainly due to net unrealised foreign exchange gain of RM2.6mil.

In its filing with Bursa Malaysia on Monday, the company said the gain arose from the revaluation of long term receivable for the arbitration award in Saudi Arabia. This was offset by foreign currency exchange loss from the revaluation of US dollar term loan balance under the plantation division.

Revenue was 3.6% higher at RM177.14mil against RM171.05mil in the same period last year, from higher contributions from the construction and oil and gas businesses.

Earnings per share was 0.92 sen from 0.48 sen in the previous year.

Nine-month earnings stood at RM17.44mil, a 74.7% increase from RM9.98mil AZRB posted a year ago.

However, revenue for the period fell 2% to RM485.76mil compared with RM496.2mil due to lower construction revenue, as certain projects were completed in the previous year.

AZRB’s remaining construction order book stands at RM3.477bil. It is confident in adding and enchancing the order book, hence expects the division to continue performing strongly.

The oil and gas division is expected to remain steady despite the continued weakness in global oil prices and sentiments.

“The division also expects increasing contribution from its operations at Tok Bali Supply Base as the port continues to develop and mature,” it said.

Meanwhile, AZRB expects the plantation division to see yields of fresh fruit bunches to improve, and also see higher contribution through increasing yields and implementation of stringent cost controls.

The property division is currently planning to launch several residential development projects in 2016. It now has projects with an estimated gross development value of RM1.4bil.

The hotel properties under the property division is also expected to contribute more from 2016 onwards with the completion of a new hotel wing at the existing Residence Inn Cherating in early 2016.

Source: The Star
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Re: Ahmad Zaki Resources

Postby winston » Fri Jan 22, 2016 4:33 pm

4 November 2015

AZRB to jointly develop RM257mil GDV project in Kwasa Damansara

KUALA LUMPUR: Ahmad Zaki Resources Bhd (AZRB) will jointly develop 188 high-rise residential units in Kwasa Damansara township in Sungai Buloh with an estimated gross development value of RM257mil.

The construction and property development group told Bursa Malaysia that its unit, Ahmad Zaki Sdn Bhd, had received a letter of award (LoA) from Kwasa Land Sdn Bhd, a wholly-owned subsidiary of the Employees Provident Fund which is the master developer of the 2,230-acre Kwasa Damansara township, to be its development partner for the project on a 3.91-acre piece of land identified as R3-4.

Kwasa Land had invited selected prequalified bumiputra developers to submit requests for proposal for R3-4 earlier this year.

The LoA will be subject to the execution of a development rights agreement with Kwasa Land within 60 days.

AZRB said the award was expected to contribute positively to the group’s future earnings and net assets.


Source: The Star
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Re: Ahmad Zaki Resources

Postby winston » Fri Sep 08, 2017 8:34 am

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Ahmad Zaki wins RM222mil job for Bukit Bintang City Centre

BY M. HAFIDZ MAHPAR

KUALA LUMPUR: BBCC Development Sdn Bhd, the developer of the RM8.7bil Bukit Bintang City Centre at the former Pudu Prison site, has awarded a RM221.9mil contract to Ahmad Zaki Resources Bhd’s (AZRB) unit Ahmad Zaki Sdn Bhd.

In a filing with Bursa Malaysia, AZRB said the subsidiary received the letter of award for Substructure Package B2 (Parcels 4 and 5): earthworks, piling, diaphragm wall, RC works, transmission main intake substation (PMU) and main distribution substation (PPU) works.

The company said the works were expected to contribute positively to the group’s future earnings.

It was reported that Phase 1 of the Bukit Bintang City Centre project, which makes up about half of the total gross development value of RM8.7bil, would be completed by December 2020.

The entire project will comprise a retail mall, a four-star hotel, an entertainment hub, serviced apartments, hotels, strata offices and an 80-storey three-in-one signature tower housing corporate offices, a five-star hotel and luxury residences.

Source: The Star

http://www.thestar.com.my/business/busi ... ty-centre/
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