cb industrial product holding berhad · 2019-11-15 · cbip of 7,000 ha, the associates and jv...
TRANSCRIPT
CB Industrial Product Holding BerhadEquipping Palm Oil Industries Around The World
Second Quarter 2019 Results Update
Review of Performance
2
Movement of CBIP mimics the movement of the Bursa Malaysia
Plantation Index, which is largely dependent upon the price of CPO
Quarterly Review
Continuing Operations Quarter ended
30 June
% change 6 months period ended
30 June
% change
2019 2018 2019 2018
(RM’000) (RM’000) (RM’000) (RM’000)
Revenue 92,425 158,105 (41.5) 178,327 289,395 (38.4)
Profit from operations 1,781 41,428 (95.7) 22,458 66,334 (66.1)
Share of results of associates and
joint ventures
(2,252) (2,591) (13.1) (5,983) (2,159) 377.1
Profit/(losses) before taxation (2,873) 38,093 (107.5) 11,712 63,037 (81.4)
Profit after taxation 562 27,663 (98.0) 10,833 47,734 (77.3)
Revenue for the quarter ended 30 June
2019 decreased 41.5% mainly due to lack
of contribution from the special purpose
vehicles segment (all contracts are
completed in 3Q18). This is partially
mitigated by higher revenue recognition in
the palm oil plantation segment.
The group reported losses before taxation
for the quarter ended 30 June 2019 (-
107.5% yoy) mainly due to losses from
special purpose vehicles segment, palm oil
plantations segment as well as losses of
associates and joint-venture due to lower
prices and production of palm products
during the quarter.
1
Review of Performance
3
Revenue Breakdown
6 months period ended 30 June 2019
Profit Before Taxation Breakdown
6 months period ended 30 June 2018
Palm Oil Engineering
92%
Special Purpose Vehicles
1%
Palm Oil Plantations
7%
Profit Before Taxation 6 months period ended 30 June % change
2019 2018
(RM’000) (RM’000)
Palm Oil Engineering 33,430 34,414 (2.9)
Palm Oil Plantations (14,400) (1,487) 868.4
Special Purpose Vehicles (1,335) 32,269 (104.1)
Share of results of associates and jointly-controlled entity (5,983) (2,159) 177.1
Total 11,712 63,037 (81.4)
Palm Oil Engineering
60%
Special Purpose Vehicles
37%
Palm Oil Plantations
3%
Prospect
4
Palm Oil Engineering
Orderbook as at June 2019 stands at RM406 million
RM’000
The orderbook is expected to bode well for the
performance of the palm oil engineering sector for
the financial year ending 2019 and 2020
444,000
343,000 336,000 335,000
445,000 406,000
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019
Orderbook
Prospect
5
Special Purpose Vehicles
74,000
15,0002,000 0 0
76,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1Q2018 2Q2018 3Q2018 4Q2018 1Q2019 2Q2019
Orderbook
A 49% owned subsidiary, our SPV arm
is primarily in bulky supply of specialised
vehicles for government authorities and
agencies
The decrease in revenue and loss
incurred by the special purpose vehicles
segment were mainly due to lack of
replenishment of new project following
the completion of projects
implementation in last financial year
We continue to perform regular
maintenance, refurbishment and
overhaul jobs for our existing clients,
which are not included in the orderbook
Our recent contract award from
Malaysia Airports Sdn Bhd is expected
to contribute positively to the Group in
the near to medium future
RM’000
Prospect
6
Palm Oil Plantations - Indonesia
With current landbank of approximately
32,000 ha in Central Kalimantan,
Indonesia aggressive plantation
development has commenced since first
half of 2013
Of the 32,000 ha in Indonesia,
approximately 13,000 ha has been planted
as at June 2019 with approximately 1,000
ha targeted to be planted for the year 2019
Movement in prices of crude palm oil
products is the main external factor
affecting the business operations of our
oil palm plantation division
Our strategy for the oil palm plantation in
Indonesia remains to complete our planting
development. With the commissioning of
the palm oil mill in late 2018, we will add
another revenue stream to our Group
which is negligible at present
Prospect
7
Oil Palm Plantation – Associates and JV
With effective planted area attributable to
CBIP of 7,000 ha, the associates and JV
plantation assets has posted a combined
losses of RM2.252 million for the quarter
ended 30 June 2019, compared to a
losses of RM2.591 million in the
corresponding quarter in 2018. The
losses is mainly due to lower prices and
production of palm products.
With a non-controlling interest,
performance of the associates and JV
plantation assets is to a large extent,
dependent upon the crude palm oil selling
price and yield.
Planted: 1,264 ha
Planted: 2,319 ha
Planted: 3,448 ha
• Tanjung Langsat, Johor Bahru
• Biodiesel - 120k mt/year
• Refinery - 134k mt/year
• Plant refurbishment on-going, target
commissioning by end-2019
Biodiesel - Overview
8
CBIP Berhad
Gulf Lube Malaysia Sdn Bhd TPG Oil & Gas Sdn Bhd
70% 80%
• Port Klang Free Trade Zone
• Biodiesel - Plant 1 - 250k mt/year, Plant
2 – 100k/mt/year
• Refinery - 250k mt/year
• Plant refurbishment on-going, target
commissioning by end-2019
Process Flow and Production Capacity
9
Process Flow
Gulf Lube Malaysia TPG Oil & Gas Sdn Bhd
Product
Capacity
(MT/year)
Refined Bleached and
Deodorizing (RBD) 238K
Palm Methyl Ester (Biodiesel) 310k
Glycerine (By product) 35k
Product
Capacity
(MT/year)
Refined Bleached and
Deodorizing (RBD) 120K
Palm Methyl Ester (Biodiesel) 120K
Glycerine (By product) 11.7K
CPO
RBD Processing BiodieselPre-
treatment
Glycerine
By-Product
Refinery Process
Plant Capacity
Main Product
RBD
Option 1: Purchase
CPO
Option 2:
Purchase RBD
0
5
10
15
20
Industry Outlook
10
Drivers of the Business
• Total domestic capacity has stagnated since
2016 at 2.35 million MT of biodiesel
• Number of domestic refineries has also
stagnated at 16 plants as of 2018
Source: GAIN Report – Biofuels Annual 2018
Capacity (MT) Utilization Rate
Increasing Demand Coupled with Stagnant Supply
Domestic Refineries
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(est)
Malaysia Biodiesel CapacityProduced CapacityUtilization Rate (%)
• Utilization rate is expected to hit an all
time high of 69% in 2019
• Production capacity has registered a 9
year CAGR of 32.63% with momentum
likely to endure with the expected
Malaysia’s implementation of B10
mandate in 2019 and B20 in 2020 and
Indonesia’s implementation of B30 from
B20 in early 2020
Business Strategy
11
Securing Off-Take Sale Contract and Supply Contract
While waiting for refurbishment to be completed, we are working on
Securing off-take contract with Petronas and other buyers in Malaysia
Securing off-take contract with oversea buyers
Securing supply of CPO and RBD from Malaysian Listed Companies
Appendix
12
Main Entrance Refinery and Process Plant
Tank Farms Jetty Connectivity to Port
Registered Office
Further Information
13
Registered Office
CB Industrial Product Holding Berhad
No 1, Jalan Astaka U8/83
Section 8, Bukit Jelutong
40150 Shah Alam
Selangor Darul Ehsan
Telephone No.: 03 7845 4115
Facsimile No.: 03 7845 4117
E-mail: [email protected]
Website: www.cbip.com.my
Contact Person
Jonathan Lai
Investor Relations & Corporate Affairs
CB Industrial Product Holding Berhad
Telephone No.: 03 7845 4115
Facsimile No.: 03 7845 4117
E-mail: [email protected]
Disclaimer
Certain statements in this presentation are based on historical results which may not be
reflective of future results. Other statements, including without limitation, those regarding
our future prospects, strategies and objectives of our Group, which are forward-looking in
nature, are subject to uncertainties and contingencies. Although we believe that the
expectations reflected in such forward-looking statements are reasonable at this time, there
can be no assurance that such expectations will subsequently materialise. The inclusion in
this presentation should not be regarded as a representation or warranty by our Group or
our management team that the plans and objectives of our Group will be achieved.