PETALING JAYA: Barakah Offshore Petroleum Bhd president and chief executive officer Nik Hamdan Daud wants to remain as its largest shareholder.
Refuting reports about a possible disposal of his 40 per cent stake in the company, Nik Hamdan said: “Those were rumours actually. It was not my statement anyway. It is normal for me to look for strategic partners that can bring added value to Barakah.”
He, however, confirmed that he had talked with several parties over a strategic partnership to make the company more competitive. Part of the potential deal may involve selling some of his shares, although he was keen to keep his controlling interest.
“We are still in talks and looking for a suitable partner to be more competitive since the last one year when the economy was bad and we needed to reposition ourselves.
“We are also open up to new potential and maybe find some technology partners,” he told the media after its annual general meeting and extraordinary general meeting here today.
As of March 30 this year, Nik Hamdan holds a 39.81 percent stake in Barakah. This was followed by United Power Holdings Ltd (11.91 per cent) and Felda Investment Corp Sdn Bhd (8.89 per cent).
A report by a financial daily three days ago said at least three companies had expressed interest in buying his stake in Barakah.
Two of them were Serba Dinamik Holdings Bhd and Samling Group, as well as foreign companies.
Asked about Serba Dinamik, Nik Hamdan said it was just a talk “between friends”.
Barakah recorded a net loss of RM216.704 million in the financial year ended December 31, 2017, compared to a net profit of RM14.534 million a year earlier.
The net gearing last year increased significantly to 45.9 per cent compared with 8.5 per cent the previous year.
Meanwhile, Nik Hamdan said the company had submitted about 20 bids this year valued at about RM5 billion.
“In 2018, we have submitted 20 bids worth about RM5 billion. Of this, we think we are able to secure at least RM500 million worth of the bids for this year alone.
He said the company's strategy is to focus on winning more bids, optimizing costs and improving project management.
The current Barakah contract value stands at RM225 million, of which 70 percent are works in the Sarawak waters.
Barakah offers pipeline services, offshore transportation and installation, topside major maintenance and hook-up commissioning, onshore pipeline and construction, underwater services and ship management and chartering.