KOTA KINABALU: SMJ Energy Sdn Bhd (SMJE) recorded RM259mil profit after tax (PAT) for its financial year ending Dec 31, 2023, against a net loss of RM7mil in the previous year as a start-up.
Announcing its audited financial results on Tuesday, the state-owned entity said the remarkable performance was driven by substantial dividends from its wholly-owned subsidiary Sabah International Petroleum Sdn Bhd (SIP), mainly from its 10% interest in a lucrative Petronas LNG9 (PLNG9) investment.
Other contributions include share profits from SMJE's 25% interest in the Samur petrochemical plant and crude oil sales from its 50% interest in the Samarang Production Sharing Contract (PSC), it said in a statement here.
Sabah Finance Minister Datuk Seri Masidi Manjun who is SMJE chairman said, "We are proud to have a lineup of reputable and respected professionals serving the SMJE board and management team, ensuring robust corporate governance and a strategic growth plan focused on profitability.
"For the fiscal year 2023, the SMJE Group of Companies achieved gross revenue of RM944mil.
"The group concluded the year with a positive cash balance of RM250mil and total gross assets of RM5.1bill.
"The company's prudent financial management is evident in its paid-up share capital of RM50mil by mid-2023 and the declaration of its inaugural dividend of RM50mil to the Sabah state," he added.
Masidi noted that SMJE's acquisition of SIP in 2023, has proven to be highly profitable and value-accretive due to the strong dividend flow from LNG9 for the next 13 years.
"Restructuring SIP's substantial legacy debts through Sukuk refinancing at a significantly lower interest rate has dramatically reduced borrowing costs, achieving over RM60mil in interest savings in 2023 alone.
"SIP will now refocus on its core business of floating production storage and loading services," he said further.
Previously on Dec 7, 2021, Sabah government had inked the Commercial Collaborative Agreement (CCA) with Petronas which saw the State having greater revenue share and participation in the oil and gas (O&G) value chain in Sabah, where SMJE has been entrusted to implement the CCA in the best interest of the State.
Masidi said several major projects are in the pipeline to be announced soon and moving forward, SMJE aimed to continue acting as a prudent financial investor, focusing mainly on the acquisition of profitable O&G assets with strong cash flow operated by reputable companies with proven ESG (Environmental, Social and Governance) practices.
