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26 Jan 2012
Bintulu Port to register accretive earnings in the future
KUCHING: Bintulu Port Holdings Bhd’s (Bintulu Port) involvement in
the Samalaju port project is expected to provide it with long term
sustainability.
Recent media reports indicated that the Sarawak
state government has tasked Bintulu Port to implement the Samalaju port
project, a crucial component of the Sarawak Corridor of Renewable Energy
(SCORE) development that has been accorded top priority.
The new
port on 450 hectares located about 60km by road from Bintulu town was
slated to handle the import of raw materials and the export of finished
products for energy intensive industries located in the Samalaju area.
According
to Kenanga Investment Bank Bhd’s (Kenanga Investment) the RM500 million
‘aid’ for the project would come in the form of government grants. More
than RM2 billion was earmarked for Samalaju Port’s development but was
yet to be confirmed by Bintulu Port.
Despite the hefty capital
expenditure (capex) for Bintulu Port in the next two to three years, the
research firm opined that it would be earning accretive in the long
term support with business from Petronas LNG.
It expected further
details to be announced later in the week especially on details of the
project financing, it did not discount that the capex could pose the
risk of lower dividend payouts less that six per cent of yield (37.5 sen
in financial year 2010). It maintained its target price of RM7 per
share.
The Borneo Post - Thursday/January 26, 2012
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