Energy & Technology

KUALA LUMPUR: British multinational aerospace and defence company Rolls-Royce Holdings Plc has supplied and commissioned four of its mtu Kinetic PowerPacks to X-FAB Sarawak. X-FAB Sarawak is the Malaysian division of X-FAB Silicon Foundries, a leading foundry group for specialty semiconductor applications. The dynamic uninterruptible power supply (DUPS) units secure the critical power load for operations at the company’s manufacturing site in Kuching, Sarawak. mtu Kinetic PowerPacks are engineered to perform seamlessly under the most demanding power supply challenges. They provide immediate, high-quality power through the use of kinetic energy. The units eliminate the need for batteries as in a standard UPS configuration, offer a much smaller footprint, and are environmentally friendly due to their 20+ year equipment life and ability to run on sustainable fuels such as HVO. “Being secure in the knowledge that the power supply is reliable and of the highest quality, even during times of grid instability or interruption, is important for any business but is especially vital for a company such as X-FAB Sarawak, which has a consistent, high-level output of critical products and supports many employees and corporate functions,” Rolls-Royce Solutions Asia Pte Ltd project manager Bryan Foo said in a statement. The X-FAB site in Kuching manufactures semiconductor wafers for automotive, industrial, and medical applications. It has over 1,400 employees and a wide range of operations, such as finance and procurement. The four installed mtu Kinetic PowerPacks feature a medium voltage, parallel system configuration offering 2000 kVA (1600kW). They replace older, existing DUPS units from a different manufacturer that were experiencing ongoing issues with dropping critical load from the mains. In normal operation, when the public power supply is working, the mtu Kinetic PowerPacks use a choke – a heavy, rotating electromagnetic coil – to compensate for the power grid’s short-term current and voltage fluctuations. The Kinetic PowerPacks also come with an MTU ValueCare service agreement, which provides preventative maintenance at regular intervals and technical support to ensure maximum performance. Rolls-Royce Solutions Asia Pte Ltd project engineer Elvenrey Rios said the company’s project team upheld X-FAB’s strong safety culture, product quality and user-friendly equipment throughout the process. “The reliable critical load support provided by the current mtu Kinetic PowerPacks has also resulted in the customer engaging Rolls-Royce for an additional unit,” he said.

KUALA LUMPUR: SMTrack Bhd has established a partnership with Straits Millennium Sdn Bhd (SMSB), a facility management service provider for digital economy initiatives for rural communities in Malaysia This partnership signifies the beginning of a collaborative effort to transform rural community centres in Malaysia by implementing digital economy initiatives as part of the Smart Village Program. Both companies will form a special purpose vehicle (SPV) to tender for projects under the Smart Village Program project. The investment reflects both parties’ commitment to this venture, with SMTrack holding a 60 per cent stake and SMSB holding 40 per cent. SMSB operates in the support services sector, which comprises construction, facility management, information and technology (IT) infrastructure, energy, oil and gas, marine, and general trading. SMTrack deputy executive chairman Datuk Azmi Osman said the joint venture between SMTrack and SMSB is a strategic move to leverage the company’s combined technology and facility management strengths. “Our goal is to ensure that the rural communities of Malaysia can enjoy the benefits of the digital economy, thus bridging the urban-rural divide,” he said in a statement. This collaboration aligns with the government’s initiative, Dasar Pembangunan Luar Bandar 2030 (DPLB), launched in June 2019. DPLB aims to prepare rural communities for local and global challenges and, more importantly, accelerate transformation in rural Malaysia by 2030. The Smart Village Projects aims to provide rural communities with high-speed internet access and digital technologies, enhancing education, healthcare, and economic opportunities through digital marketplaces and smart farming. SMTrack’s non-independent non-executive director Datuk Zaidi Hashim said this venture is a significant step forward for SMTrack and a testament to the immense potential of digitising rural Malaysia. “By empowering these communities with digital tools and infrastructure, we are not only enhancing their quality of life but also unlocking new economic prospects for the nation,” he said. As agreed by both parties, the formation of the SPV underscores their dedication to the successful execution and management of the project. With a strategic allocation of resources and expertise, this joint venture is poised to significantly contribute to the digital empowerment of Malaysia’s rural community centres, paving the way for a brighter, more connected future. SMSB chief strategy officer Norresah Abu Samah said the company’s collaboration is a testament to its shared vision of empowering rural communities through innovative digital solutions. “Together, we are set to make a tangible difference in the lives of Malaysia’s rural population,” she said.

KUALA LUMPUR: Sime Darby Group’s automotive unit, Sime Darby Auto ConneXion (SDAC), has launched Ford Assured, a programme offering certified pre-owned Ford models. This is part of the company’s commitment to continuously enhance the customer experience. The Ford Assured programme is a comprehensive assurance and certification effort aimed at instilling confidence among customers who consider purchasing pre-owned Ford vehicles. The Ford Assured programme is a meticulous inspection and certification process that ensures pre-owned Ford cars meet stringent quality and performance standards. This programme is tailored to enhance customers’ overall pre-owned car buying experience, reinforcing Ford’s commitment to quality, reliability, and customer satisfaction. The programme entails stringent vehicle standards, requiring pre-owned Ford vehicles to be below five years old or have mileage below 140,000km for Ranger and 80,000km for Everest, with a comprehensive full-service history. Moreover, a meticulous 96-point inspection conducted by certified technicians ensures that every facet of the pre-owned Ford vehicle, from mechanical performance to cosmetic appearance, meets the highest standards. Furthermore, specific refurbishment standards ensure the refurbishment process is executed professionally, promoting consistency and quality across all certified pre-owned Ford vehicles. Sime Darby Motors managing director Southeast Asia Jeffrey Gan said that despite the growing demand in Malaysia’s pre-owned vehicle segment, the company remains steadfast in its dedication to meeting consumer needs. “Reflecting our trusted reputation across the automotive sector, the Ford Assured Programme mirrors Sime Darby Motors’ relentless pursuit of setting industry benchmarks and enhancing the overall automotive experience,” he said in a statement. The Ford Assured Programme offers a minimum 12-month warranty covering the engine and gearbox, subject to terms and conditions. These conditions include requiring the vehicle’s mileage to be below 140,000km for Ranger, 80,000km for Everest and below 5 years old. Additionally, the warranty stipulates that vehicle parts must not be replaced or modified by third parties and must be serviced, maintained, and repaired by authorised Ford dealers at recommended service intervals. SDAC managing director Turse Zuhair said with the introduction of the Ford Assured Programme, the company has elevated the pre-owned vehicle landscape. “Demonstrating our commitment to delivering unparalleled quality and customer satisfaction, the programme is a testament to our rigorous standards in customer assurance, providing a trusted solution for those searching for a reliable and high-quality pre-owned Ford vehicle,” he said. This offering from SDAC is currently available at the Ford Ara Damansara showroom.

KUALA LUMPUR: Vessel fuel management solutions provider Fueltrax recently signed 28 high-value contracts in Malaysia, totalling RM24 million, the company’s significant achievement in Southeast Asia. The deal is a positive milestone for Fueltrax in Southeast Asia, showcasing the company’s commitment to driving advancements and economic growth within the region’s maritime industry. Of these contracts, 12 vessel operators have integrated their marine operations data through FuelNettm, Fueltrax’s with Malaysian oil and gas companies involving 38 vessels. This integration utilises FuelNettm’s cloud-based platform, offering real-time data and insights into fuel consumption, efficiency, and environmental compliance. “Our accomplishments highlight our steadfast dedication to drive operational efficiency, sustainability, and economic prosperity throughout the region. “As the foremost brand for vessel fuel management system (VFMS) globally, with extensive experience managing over 1,000 vessels globally, including 38 in Malaysia, we are dedicated to providing world-class equipment, reliable technical support, and cost-effective solutions,” Fueltrax director of operations in Southeast Asia Faiz Azani said in a statement. Implementing Fueltrax’s VFMS across these 38 Malaysian fleets is expected to yield significant benefits. This investment is projected to enhance overall operational efficiency and productivity by 30 per cent, directly impacting the bottom line of Malaysian vessel operators and companies. Additionally, VFMS facilitates real-time data analysis and streamlined workflows, enabling faster and more informed decision-making. This combination of increased efficiency and better decision-making contributes to the long-term viability of the Malaysian maritime industry, positioning it for continued growth and competitiveness in the global market. “Fueltrax aims to contribute to Malaysia’s development as a leading maritime hub by promoting responsible fuel management practices. “Hence, any investors planning to have any marine business in this sector will have high confidence that value losses in poor fuel costs will impact their business cost less,” added Faiz. “These collaborations are expected to create significant economic benefits for the Malaysian maritime industry, including creating at least 100 new jobs. “These positions arise not only among companies directly involved in the contracts but across the supply chain and associated support functions, further increasing the industry’s growth and efficiency,” he said. Each comprehensive package of Fueltrax’s solutions is tailored to meet client needs, including data monitoring, support services, equipment maintenance, and efficiency enhancements. These solutions empower vessel operators to digitalise operations, optimise fuel usage, and reduce their carbon footprint through advanced fuel management technology. Features like BestSpeed and BestEconomy maximise vessel speed with minimal fuel, promoting efficient and responsible crew behaviour. Building upon its strong track record in Southeast Asia, Fueltrax previously secured contracts with ten leading vessel companies between 2017 and 2022. These partnerships solidified Fueltrax’s reputation for delivering innovative solutions and exceptional regional service. Fueltrax’s solutions align with the International Maritime Organization’s (IMO) 2050 strategy for decarbonisation, empowering vessel operators to contribute to a cleaner and more sustainable maritime future. With this success as a foundation, Fueltrax plans for further growth and expansion in Malaysia, including establishing a second Vessel Operation Center (VOC) to provide 24/7 support to clients globally.

KUALA LUMPUR: Pure play enterprise Internet of Things (IoT) solutions provider SMRT Holdings Bhd’s wholly-owned indirect subsidiary, N’osairis Technology Solutions Inc (NTSI), obtained a letter of offer from Pito AxM Platform Inc (PAPI) for the deployment of managed automated teller machine (ATM) infrastructure solution across designated ATM sites in Luzon, the Philippines. Under the offer, SMRT will deploy its IoT solutions at ATM sites designated by PAPI by the end of 2024. Following the deployment, SMRT will manage the sites’ network infrastructure for three years, commencing from the installation date of each site. SMRT group managing director Maha Palan said that by building on its success in the Indonesian market, the company has successfully penetrated the Philippines market with this project. “This is indeed a major milestone for SMRT. We will further grow our recurring income base with the additional sites we manage. Currently, more than 50 per cent of our revenue stems from recurring sources,” he said in a statement. PAPI is a fully owned subsidiary of Seven Bank Ltd, a Japanese bank and leading global ATM network and financial service provider with some 27,000 and 17,000 ATMs installed in Japan and outside Japan, respectively. PAPI, incorporated in the Philippines in 2019, focuses on offering ATM services such as balance inquiry, cash withdrawals, and deposits for its customers in the Philippines market. “As we expand our footprint into the Philippines, we can replicate our proven business model in other potential markets across ASEAN. “On balance, we remain confident in our current growth strategy and are committed to our goal of being the region’s leading provider of comprehensive end-to-end IoT services,” Maha Palan said.

KUALA LUMPUR: Automotive upholstery maker Pecca Group Bhd (PGB) posted a net profit of RM13.39 million in the second quarter (Q2) ended December 31, 2023 (FY24), up 59 per cent from RM8.41 million in the same quarter last year. Revenue rose 21 per cent year-on-year (YoY) to RM64.76 million in Q2 from RM53.48 million a year ago. In Q2 FY24, PGB’s revenue was driven by demand for upholstery car seat covers, the sewing and supply of covers for car accessories, and wrapping and stitching services. These subsegments each contributed about 90 per cent, 5 per cent and 3 per cent of PGB’s total revenue, respectively. The original equipment manufacturer (OEM) upholstery car seat segment contributed about 89 per cent of the total revenue for car seat covers, while the replacement equipment manufacturer (REM) and pre-delivery inspection (PDI) segments contributed about 3 per cent and 8 per cent, respectively. PGB’s net profit margin for Q2 was 20.7 per cent, a 32 per cent increase from Q2 FY23. PGB’s profitability improved due to enhanced cost efficiency, with the company’s production facilities benefiting from better economies of scale. Chief executive officer Foo Ken Nee said the Q2 earnings reflect the company’s commitment to sustained business growth. He said this marks the sixth consecutive quarter where PGB set a new net profit record. “Our cash position also rose to RM138.96 million as of Q2 FY24, up 24.9 per cent from RM111.23 million in FY23. “Our robust financial strength will give us the firepower to accelerate our diversification into new markets,” he said in a statement. Foo said the outlook for automotive total industry volume (TIV) in Malaysia continues to be resilient. “We are well-positioned to capitalise on this momentum, with our focus on productivity, cost efficiency and optimal procurement strategy,” he said. Executive director Teoh Zi Yi said that moving forward, PGB is banking on its aviation division to unlock the next growth phase. “We will continue to work toward building a strong and stable customer base in the aviation industry, tapping the capabilities and networks of our industry partners. “Last week, we formalised a strategic partnership with Global Component Asia Sdn Bhd (GCA) at the Singapore Airshow 2024. “This partnership will allow PGB’s subsidiary Pecca Aviation Sdn Bhd to deliver aircraft interior solutions to GCA’s roster of prominent aviation customers, including airlines and maintenance, repair, and operations (MRO) players from key markets around the world. “With the global air travel industry having staged a near-complete recovery, we believe we can achieve higher profit contributions from this business,” he said.

KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) recorded revenue of RM28.7 billion for the full year ended December 31, 2023 (FY23), a marginal decline against RM29.0 billion posted in FY22 amidst a challenging year for the global chemical industry. In a statement, the company said the moderating economic growth and slower-than-anticipated recovery in China weighed in on the industry, leading to lower product demand and softening prices. Concurrently, geopolitical tensions kept energy prices high, resulting in higher feedstock costs and margin compression. PCG registered a net profit of RM1.8 billion, declining against RM6.3 billion in FY22. Plant utilisation was recorded at 85 per cent compared to the previous year’s 89 per cent in the face of operational challenges, as well as several statutory turnarounds and maintenance activities undertaken during the year. In the fourth quarter (Q4) of FY23, revenue improved by 6 per cent quarter-to-quarter (QoQ) to RM7.2 billion on higher production and sales volumes. However, net profit for Q4 declined to RM142 million on lower product spreads and higher energy and utilities costs. PCG announced a second interim dividend payout of 5 sen per share, amounting to RM400 million. The total dividend declared in FY23 amounts to RM1.0 billion, representing 61.3 per cent of the net profit. PCG managing director and chief executive officer Mazuin Ismail said FY23 was a challenging year for the company, both on the market and operational fronts. “As we navigated a very volatile chemicals market throughout the year, internally, we faced interruptions at a few of our plants, which led to a weaker performance in our olefins and derivatives (O&D) and fertilisers and methanol (F&M) segments. “Simultaneously, the specialties segment continued to be impacted by prolonged destocking and intensified competition from Chinese producers. “Despite the persistent low spreads and operational challenges, we remain resilient with a healthy financial position, enabling us to exceed our commitment to our shareholders,” Mazuin said in a statement. On the chemicals market outlook, he said, the challenges seen in 2023 are expected to continue into 2024 as economic recovery is expected to remain sluggish but with pockets of opportunities in various sectors. “Ethylene prices should see some support later in the year as consumption improves and drives the demand for polyethylene in packaging applications. “On the F&M side, urea prices are expected to be stable, supported by planting season in India and the continued ban on urea exports from China. “Methanol prices may ease as downstream demand is expected to remain soft, likewise for specialty chemicals,” Mazuin said. He said the chemicals industry is cyclical, and PCG expects the current downcycle will turn around as demand catches up with supply. “We have successfully resolved most of our operational challenges and are strategically positioning ourselves to seize opportunities as the market rebounds,” he said further. On growth projects, Mazuin stated that performance test runs are ongoing at the petrochemical facilities in Pengerang. “We are also looking forward to achieving commercial operations at other new plants this year, namely the melamine plant in Gurun, Kedah, the specialty chemicals plant in Sayakha, India, for the production of pentaerythritol and calcium formate, as well as the expansion of the 2-Ethylhexanoic Acid (2-EHA) plant in Gebeng, Pahang, through our joint venture (JV) company, BASF Petronas Chemicals. “These three facilities, with a combined annual capacity of about 130,000 metric tonnes per annum, mark several milestones in our 2-pronged strategy towards achieving sustainable growth,” he said.

KUALA LUMPUR: UEM Group Bhd’s subsidiary Cenergi SEA Bhd has signed a 21-year renewable energy virtual power purchase agreement (VPPA) with China-based GDS Holdings Ltd, a leading developer and operator of high-performance data centres in Asia. The agreement positions GDS among the first cohort of green power off-takers in Malaysia under the Corporate Green Power Program (CGPP), which Malaysia’s Energy Commission administers. The CGPP allows for a total of 800MWac of solar power to be developed by solar producers and secured by corporate off-takers in Peninsula Malaysia. GDS has subscribed to 22.5MWac of renewable power for its Nusajaya Tech Park Data Center Campus in Johor. The partnership with Cenergi empowers GDS to claim renewable energy credits, facilitating reductions in greenhouse gas emissions and advancing its target of achieving net-zero carbon emissions by 2030. The renewable energy procured through this agreement will be supplied by Cenergi’s 29.99MWac large-scale solar photovoltaic farm in Kedah will be operational by the fourth quarter Q4) of 2025. Cenergi group chief executive officer Hairol Azizi Tajudin said the company looks forward to a stronger partnership with GDS in Malaysia’s renewable energy journey. “This collaboration underlines our dedication to sustainability and fits perfectly with our goal of promoting renewable energy projects. “By supplying GDS with green electricity from our upcoming solar farm, we are not just helping them reach their net-zero emissions target but also contributing to Malaysia’s larger plan for a greener energy mix. “We believe in the positive impact of such partnerships in creating a more sustainable future for all,” he said in a statement. Synergy is Malaysia’s largest biogas player, solar power producer and diversified renewable energy developer, specialising in reducing carbon emissions by developing and investing in renewable energy and energy efficiency projects, making it a well-suited collaborator for GDS’s sustainability initiatives. Through this collaboration, GDS anticipates a reduction in its carbon footprint by up to 38,000 tonnes of CO2 equivalent per year, which is equivalent to eliminating CO2 emissions from approximately 8,400 petrol-powered passenger vehicles driven in a year and 7,400 homes’ electricity use for one year. Combined with GDS’s existing green direct current (DC) technologies, this initiative establishes a foundation for further reducing carbon emissions and increasing the proportion of renewable energy usage. GDS chief executive officer William Huang said collaborating with Cenergi as pioneers in Malaysia’s renewable energy VPPA exemplifies the company’s commitment to fostering sustainability within the industry. “As a first mover in Johor with our Nusajaya Tech Park Data Center Campus and various ongoing projects, this endeavour signifies a stride forward in our journey towards achieving net zero emissions and contributing to greening the electricity grid. “This partnership not only underscores our dedication to environmental stewardship but also reinforces our position as leaders in driving sustainable innovation within our sector,” he said. The renewable energy procured from Cenergi’s solar farm will also support Malaysia’s goal of having 31 per cent renewable energy in its national energy mix by 2025, as outlined in the National Energy Transition Roadmap (NETR).

KUALA LUMPUR: Leading oil and gas (O&G) services provider Deleum Bhd posted a net profit of RM45.7 million for the financial year ended December 31, 2023 (FY23) from RM 42.1 million last year. The net profit increased marginally due to higher income tax expenses and non-controlling interests. The company’s revenue increased 13.5 per cent in FY23 to RM792.0 million from RM698.0 million the previous year, driven primarily by a strong revenue contribution from the power and machinery segment, which generated RM668.0 million for the year. Pre-tax profit grew 25.1 per cent to RM84.9 million for FY23 from RM67.9 million previously, in tandem with an increase in group revenue. Group chief executive officer Rao Abdullah said the company’s strategic initiatives yielded another year of solid financial performance. “We have plans lined up for FY24 to accelerate growth and strengthen our position in the industry. “Our commitment to fostering growth and creating value for all stakeholders is unchanged. We are committed to capitalising on new opportunities, optimising our resources, and encouraging innovation to propel Deleum to greater success,” he said in a statement. Alongside the sturdy financial performance, the company declared a second interim single-tier dividend of 3.70 sen per share in respect of FY23, payable on March 29, 2024. With the first interim single-tier dividend of 2.00 sen paid on September 29,  2023, Deleum declared a total dividend of 5.70 sen per share for FY23. A dividend payout of RM22.9 million represents 50.0 per cent of FY23 net profit. Deleum has maintained a strong balance sheet and continues to achieve healthy sales performance to power its core businesses. As of FY23, Deleum’s net cash position has further strengthened, with cash and bank balances of RM215.9 million exceeding total borrowings of RM2.4 million, compared to RM178.0 million and RM8.8 million on December 31, 2022, respectively. Shareholders’ equity increased to RM413.4 million as of December 31, 2023, up from RM388.8 million as of December 31, 2022. The company’s firm orderbook currently stands at RM552.6 million, consisting of works and equipment to be delivered within the next 24 months.