Sumatec Forecast RM175 Mln Turnover At 2004

Bernama, 28 June 2004

SUMATEC Resources Bhd (SUMATEC), a contractor of oil and gas industry, forecasts its turnover of about RM175 million and net profit of about RM15 million for the financial year ended December 31, 2004, its managing director, James Chan said.

Chan said to reporters after the company's 7th annual general meeting here that he was confident of the company's future given that it had about RM527 million worth of local projects which it could develop until 2006.

"Besides that, we are also waiting for the approval of a project worth about RM1.2 million and expect that the company can make a gross margin of about 15 percent to 20 percent this year," Chan said.

The company is also seeking active overseas markets since the local oil and gas reserve in the region is very limited, he said.

"Since last year, our oil and gas reserve is very limited but if we look at other countries such as Sudan and other Commonwealth of Independent States (CIS) countries, their reserve are much more than Malaysia. "

"Like Sudan, their oil industry has just started about five years ago and they are now producing about 600,000 barrels per day, which means that it still has great potential for development in the future," he said.

Furthermore, Chan said, since Malaysia has been in this business for last 25 years, our reserves of oil and gas has dwindled, therefore the company had to look overseas markets.

The company also plans a few projects for the next five to 10 years ahead which can bring more solid income.

"We also looking at the possibility of developing our own potential in the marine transportation and logistic industry which can help us to transport our oil and gas in the future," Chan said, adding that the details and concrete plan of the project would be announces soon.

The company also hopes to have its own oil storage centre which can solve the shortage of supply of oil in future.

"Our country, which is located in the middle of suppliers of oil (such as Iran and Iraq) and consumers (such as China, Japan and Taiwan), is able to provide them with oil from our reserves if any shortage of supplies occur," he said.

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