Latest news with #RM4.4bil
The Star
12-06-2025
- Business
- The Star
Potential for T7 Global to grow its earnings
PETALING JAYA: T7 Global Bhd has a strong potential to grow its earnings particularly from its maintenance, construction and modification (MCM) services, according to BIMB Securities Research. In a report, the research house said between its MCM services and well decommissioning activities, setbacks from T7 Global's baggage handling system contract delays due to logistical constraint should be addressed. It added it was optimistic about the group remaining an emerging player in the offshore maintenance and well decommissioning space. 'From the second quarter of 2025 (2Q25), the company will be focusing on executing its order book worth RM4.4bil. 'The bulk of the order book comes from the MCM and hook-up and commissioning services contracts that it secured from new clients in Peninsular Malaysia including Jadestone Energy Plc, IPC Malaysia and Petrofac (M-PM304) Ltd,' the research house pointed out. T7 Global has also secured a 53-well plug and abandonment (P&A) contract from Petroliam Nasional Bhd which is expected to be completed by 2027 or 2028. 'The Enya rig that is dedicated for P&A work has completed nine wells in Sabah and subsequently been mobilised for works in Peninsular Malaysia,' BIMB Securities said. On the group's earnings, the research house noted that for the first quarter ended March 31, 2025, revenue increased to RM138.8mil compared with RM132.5mil in the same quarter a year ago. T7 Global's earnings rose to RM7.04mil compared with RM4.61mil a year ago on the back of revenue contribution from TSeven Shirley mobile offshore production unit (mopu) which commenced operations in Nong Yao field (Thailand) in 3Q24, and higher demand for specialist products. BIMB Securities said earnings grew despite a large jump in finance cost which more than doubled to RM17.6mil. 'Given the rising finance cost, we cut our FY25 to FY27 earnings estimate by 25% to 31%. 'However, our earnings estimate implies an earnings growth of an 11% compounded annual growth rate over FY24 to FY27,' it said. The group's borrowings, as of 1Q25, stood at RM1.4bil, while its net gearing ratio had risen to the peak of 3.3 times in 3Q24 mainly due to purchase of jack-up rig Enya and financing for two mopu projects namely T7 Elise and Shirley. It should be noted that T7 Global planned to reduce this to two times by the end of 2026. The research house said it maintained a 'buy' call on T7 Global with a target price of 46 sen, implying a 7.1 times FY25 price-to-earnings-ratio. At the time of writing, T7 Global's share price was 22.5 sen.
The Star
28-05-2025
- Business
- The Star
RHB Bank maintains growth with 1Q net profit of RM750.03mil
RHB Banking Group's group managing director/ group chief executive officer Mohd Rashid Mohamad —YAP CHEE HONG/The Star KUALA LUMPUR: RHB Bank Bhd sustained earnings growth in the first quarter of 2025 (1QFY25) with cost optimisation efforts and a focus on asset quality yielding results. 'Our new 3-year strategic roadmap, PROGRESS27, sets a clear course toward becoming the best in service, enhancing profitability, and reinforcing our purpose-driven commitment. "With focused execution priorities, from simplifying customer journeys to advancing our sustainability ambitions, we are well-positioned to deliver near-term value while unlocking long-term value for all stakeholders,' said group managing director and CEO Datuk Mohd Rashid Mohamad in a statement. During the quarter under review, RHB recorded a net profit of RM750.03mil, up from RM730.17mil in the year-ago quarter. The group reported revenue of RM4.39bil, which was slightly lower than RM4.4bil in the comparative quarter, while earnings per share rose to 17.2 sen from 17.03 sen previously. According to the bank, net fund-based income increased 7.3% year-on-year (y-o-y)to RM1.5bil, on the back of higher gross loans. Net interest margin improved from 1.83% to 1.84% over the one-year period. "The group continued to proactively manage its funding costs through active liability management initiatives. Taking this into account, the effective NIM for the quarter was 1.91%," it said. Non-fund based income, however, fell 20.2% y-o-y to RM600mil, mainly owing to lower net gain on forex and derivatives, and net trading and investment income. On an annualised basis, the group's gross loans grew 2.4% to RM239bil, supported by growth in the group community banking and commercial segments, respectively. Customer deposits was RM249bil, with current account savings account (Casa) composition improving to 28% from 27.6% In December 2024.
