KNM Group said secured RM693m new orders in 2011

KUALA LUMPUR: KNM GROUP BHD [] said it has year-to-date secured new orders amounting to RM693 million, underpinned by the bullish sentiment in the global oil and gas industry globally as crude oil surges to record highs.

“The current order book of KNM stood at RM6.4 billion and the backlog at RM5.4 billion,” said the company, which described it as an all time for the group since it was set up,” it said on Thursday, March 3.

KNM said its tender book was RM17 billion, which it said had significantly improved compared with the trough of the sub-prime crisis which was at RM10 billion.

Executive chairman and CEO Lee Swee Eng said the group’s strong order book would keep it busy for 2011 and 2012.

Lee said the current strong order win reflected a rebound of order intake and its strong TECHNOLOGY [] product line, adding that he expected demand for process equipment to be strong as new projects come on stream in Malaysia and overseas.

Read KNM Group said secured RM693m new orders in 2011 in The Edge 

KNM sees debt falling

CEO says recovering unit Borsig helping to bring down debt level.
Read KNM sees debt falling

KNM Group: Unit Gets GBP450 Million Deal To Develop Waste Recycling Project

KUALA LUMPUR (Dow Jones)--KNM Group Bhd. (7164.KU) said Tuesday that its unit, KNM Process Systems Sdn. Bhd., has received a GBP450 million (MYR2.20 billion) contract from Peterborough Renewable Energy Ltd. to develop an 80-megawatt biomass and waste recycling centre project.

The company said the contract is for four years from the start of the project, which will be located in Peterborough in the U.K.

The contract is "expected to contribute positively to KNM Group's earnings" for the next four financial years, the company said in an exchange filing.

-By Ankur Relia; Dow Jones Newswires; 603-2026-1233; ankur.relia@dowjones.com

22.12.10 Price reaction  to the news!

KNM confirms deal with Lukoil Uzbekistan

KNM Group Bhd yesterday confirmed that its unit, KNM Process Systems Sdn Bhd, had formally executed the contract agreement in Tashkent, Uzbekistan, with Lukoil Uzbekistan Operating Company.

The deal is for the supply of technical documentation, equipment and services for the development of gas condensate fields amounting to about RM680 million.

Read more: KNM confirms deal with Lukoil Uzbekistan

KNM??

Bursa-Chat

2 Dec 10, 23:05
12000: KNM climbing pattern is...... 2-2.50.....2.50-3.20......3.20-4.00....... within very short time....
 
21 Nov 10, 21:54
12000: After KNM's shares consolidation, it should be easily push to Rm4 per share... with the $$$ new projects coming in.... KNM is finally back on track and will challenge RM10-15 again...

KNM Group Bhd. (KNMG MK), an oil and gas services provider, jumped 14 percent to 49.5 sen, its steepest gain since Oct. 30, 2008. The company said third-quarter net income surged 76 percent from a year earlier to 56.1 million ringgit ($18 million), according to a statement to the stock exchange.
Bloomberg

KNM is finally back on track and will challenge RM10-15 again

Bursa-Chat...
21 Nov 10, 21:54
12000: After KNM's shares consolidation, it should be easily push to Rm4 per share... with the $$$ new projects coming in.... KNM is finally back on track and will challenge RM10-15 again...

KNM wins US$216m job in Uzbekistan

KNM Group Bhd, a Malaysian oil and gas services provider, said in a statement it won a US$216 million contract to supply equipment and services for the development of gas condensate fields in Uzbekistan. -- Bloomberg

Read more: KNM wins US$216m job in Uzbekistan

21 Nov 10, 21:54

12000: After KNM's shares consolidation, it should be easily push to Rm4 per share... with the $$$ new projects coming in.... KNM is finally back on track and will challenge RM10-15 again...

KNM ?

"9 Nov 10, 20:53

12000: arh..... I can share KNM will have good news next month or January... although it disappoint many people..."  ==>  taken from bursa-chat
 

DJ MARKET TALK: KNM May Rise; Units Get MYR289 Million Jobs

0000 GMT [Dow Jones] KNM Group (7164.KU) may rise to 54 sen (2 week high) after oil & gas support services provider says units won MYR289 million worth of jobs; latest contracts include jobs in Russia, Venezuela, Turkmenistan, Brazil, Australia, U.S.; says contracts to contribute to earnings in FY10-FY12. Dealers say jobs would help ease recent concerns about company's lack of earnings visibility after slowdown in business amid bid from managing director Lee Swee Eng to takeover company; bid was eventually aborted. "This piece of positive news should help lift sentiment on the stock after all the distractions and uncertainty caused by the failed takeover bid," dealer says. KNM ended +2.0% at 51 sen yesterday. (benjamin.low@dowjones.com)

AmResearch keeps Sell call on KNM

Written by AmResearch Friday, 09 July 2010 08:45

KUALA LUMPUR: AmResearch is maintaining its SELL call on KNM with unchanged fair value of 42 sen per share.

It said on Friday, July 9 the valuation was based on a FY10F PE of 12 times - at 15% discount to the stock's three-year average of 14 times.

On Thursday, KNM said its units had secured contracts worth RM289 million from June 24 until now.

AmResearch said including these new projects, KNM has secured RM1 billion in new orders for FY10F to date with a target to secure another RM1 billion by year-end.

“Assuming 2QFY10F revenue of RM400 million, we estimate that KNM's outstanding order book could rise from RM1.7 billion to RM1.9 billion currently (excluding the RM500 million Verwater oil storage terminal project in Yan, Kedah which has yet to secure financing arrangements).

“The group's tender book has risen from RM14 billion to RM17 billion (excluding the Sabah Oil & Gas Terminal project in Kimanis). KNM trades at a premium FY10F PE of 14 times compared to its peers' 10x. We think that this is unjustified given that a major portion of the group's FY10F earnings stem from a Borsig deferred tax writeback,” it said.

KNM order backlog may swell to RM3b

By Zuraimi Abdullah Published: 2010/06/24

KNM Group Bhd (7164), an export-oriented process equipment manufacturer, has hinted that its order backlog will swell to more than RM3 billion this year from RM2.1 billion currently.

"Our (order) replenishment will be higher in 2010. We now have an order backlog of RM2.1 billion. In 2009, the market was very bearish, but we were still able to get an order intake of RM1.5 billion," managing director Lee Swee Eng said.

The bearish market resulting from the global economic downturn caused KNM's 2009 net profit to drop to RM171 million from RM336.4 million previously. Group revenue eased to RM1.84 billion from RM2.5 billion.

With the current oil price at around US$70 (RM226) a barrel, the oil and gas sector is recovering but not fully, said Lee. In April this year, Lee dropped his RM3.6 billion plan to take KNM private.

"Maybe, (the sector will fully recover) at the level closer to US$100 (RM323) per barrel," he told reporters after KNM's annual general meeting in Seri Kembangan, Selangor, yesterday.

KNM is repositioning itself to manage costs more effectively and be ready for opportunities when the market is bullish again.

Lee said the repositioning includes plans to produce some of its high-end products being made in Germany at its plant in Gebeng, Pahang.

The move will allow KNM to claim as much as RM1.4 billion in tax incentive over four years till 2013.

The tax incentive was granted in April to KNM's wholly-owned KNM Process Systems Sdn Bhd after its acquisition of Germany's Borsig GmBH for ?350 million (RM1.4 billion). The purchase was completed in mid-2008.

The incentive will be applied against the total taxable income generated in Malaysia by KNM Process, Lee said.

KNM, through KNM Process, will among other things, produce boilers for use in power plants and petrochemical complexes.

The move will enable customers to buy products of similar quality to those produced in Germany at lower prices, Lee said.

KNM is in the process of setting up a production line at the Gebeng factory and Lee expects commercial production to kick off next year.

Besides boilers, it also designs and makes pressure vessels, heat exchangers, skid mounted assemblies and storage tanks for oil, gas and petrochemical industries.

Source ...

Oil & Gas

Oil & Gas
New oil sands investments suggest renewed confidence by oil majors Overweight- Platts and The Canadian Press reported that ConocoPhillips will start work on phase 2 of Surmont oilsands project in Alberta lifting bitumen production from 27,000 to 110,000 barrels/day by 2015. Surmont isa 50:50 joint venture between ConocoPhillips and France’s Total SA. There were no financial details in thenews report.- Suncor Energy Inc. (TSX:SU), another big oil sands player, is starting up Phase 3 of its Firebag oil sandsproject, which had been put into "safe mode" during the recession.

The revival of these oil sands investments suggest that oil majors have renewed confidence in the long term trend for crude oil prices, and thus in non-conventional E&P projects where the investment hurdle rates are higher.
- We highlight that we are looking at US$80-100/barrel crude oil prices in 2010.
- The beneficiaries of increased E&P activity in non-conventional projects include the process equipment andcompression equipment players (KNM, Wah Seong) and technical services providers (Dialog).

Corporate Highlights
Dialog : Potential upside to TLP’s earnings contribution in FY11 Outperform Visit Note
- According to management, the company is in advanced stages of discussion with customers for additionalstorage capacity, which would either be an expansion of T1 (from the current 400k m3 strorage capacity) or development of T2. We view this positively as this would further enhance its recurrent earnings base (i.e.around 70% of its FY09 revenue). We highlight that our back-of-envelope calculations based on the additional 200k m3 storage capacity, suggest our FY11-12 EPS forecasts could be enhanced by 11.3%and 11.1% respectively.

- We understand from management that current E&C orderbook now stands at around RM500m (vs.RM400m previously). These include 56% of the RM600m construction value of Tanjung Langsat Port (TLP)project and Vopak’s terminal in Singapore as well as other smaller EPCC jobs. Management expects 50%of its current orderbook to be recognised in FY10 and the balance in FY11.

- We have raised our FY10-12 EPS forecasts by 2.8%, 1.4% and 0.5% respectively after factoring in: 1)earnings contribution from JSB; and 2) higher revenue contribution from E&C division.- Accordingly, we have raised our SOP fair value to RM1.80 (vs. RM1.58 previously) based on 16x FY06/11PER (vs. 16x CY10 previously). Nevertheless, we highlight potential stronger earnings growth in FY11-12arising from expansion of TLP and EPCC jobs as well as sizeable catalyst handling projects.