Recently, KNM is coming back to the limelight in Bursa Malaysia. After the 4 to 1 share consolidation exercise, KNM is inching up since securing a contract worth RM680 million in Uzbekistan. Then, KNM held a briefing with research outfits indicating that the company was on the road to recovery after a hiatus one-and-a half year.
Good facts:
Good facts:
- Order book had grown to RM2.4 billion
- Tender book grown to RM16 billion
- Better capacity utilization
- Re-surging of crude oil price which touches USD90 per barrel now
- Malaysia government's intention to spur oil & gas sector
- Listing of Petronas' subsidiaries enhancing the viability of local listed companies
- Impending projects roll-out by Petronas soon
- Planning to tap into nuclear industry in Africa
IR. LEE SWEE ENG Executive Chairman / Chief Executive Officer |
Bad facts:
- Foreseeable losses in its operations in Brazil, Canada and Indonesia
- High debt levels with RM1 billion borrowings, against net cash balance of RM300 million
- Future cash flows constraint would jeopardize the company credit rating
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