SUMATEC Resources Bhd will expand into four new energy-related sectors as part of the group's massive diversification plan to broaden its future earnings base.

Managing director James Chan said: “We hope the diversification into marine transportation and logistics, renewable energy, hazardous waste management, and oil storage and terminal link to be fully in place by end-2007.”  

Sumatec had previously focused on its core engineering, procurement, construction and commissioning (EPCC) business. 

Chan said Sumatec's recent acquisition of four Sarawak-based shipping companies, which have a total fleet of six coastal oil tankers with a total capacity of 33,000 tonnes, had positioned the company as the fourth largest oil tanker player in Malaysia in terms of tonnage. 

“By 2007, we will have a 10-ship fleet with total capacity of 63,000 tonnes,” Chan told reporters after Sumatec's EGM in Kuala Lumpur yesterday. 

He said there was great potential in fuel transportation and logistic business, particularly in coastal oil tankers.  

James Chan

“There are few competitors given the high entry criteria such as high prices of ships and safety requirement standards of oil companies,” he added. 

Chan expects the coastal oil tankers business to contribute about RM50mil to the group's turnover this year with EPCC business remaining the core contributor, with about RM150mil.  

The group is also looking into the prospects of setting up renewable energy power plants in the northern part of the peninsula and oil terminals for leasing in Tanjung Pelepas Port, Johor. 

For the power plants, Chan said: “We are currently seeking for an independent power producer (IPP) licence and hope to sell the energy to Tenaga Nasional Bhd under a power purchase agreement.” 

He said the power plants project would generate about RM20mil to the group's turnover by 2006 while the oil terminals project was expected to contribute RM60mil to group turnover in 2007. 

“Once our diversification plan fully takes off, we hope to reward our shareholders with a dividend payout, possibly by financial year 2007,” Chan said. 

For the year ended Dec 31, 2004, the group registered an unaudited net profit of RM21mil on the back of RM201mil in turnover. 

Meanwhile, Bernama, quoting a source close to the company, said Sumatec is expected to close a deal within two months to explore an oilfield with Pertamina in Indonesia. 

The source also said Sumatec had three months ago submitted a bid for the construction of a natural gas station in Eastern Turkey. It was believed to be the lowest bidder for the US$30mil project.