This article first appeared in The Edge Malaysia Weekly on September 18, 2023 - September 24, 2023
Transocean Holdings Bhd, which is based in George Town, Penang, has bagged the accolade for Highest Shareholder Return over Three Years in the transport and logistics sector at The Edge Malaysia Centurion Club Corporate Awards, which tracks the performance of companies publicly traded on Bursa Malaysia with a market capitalisation of at least RM100 million but less than RM1 billion.
Based on its share price performance over the last three years until the cut-off date of March 31 this year, Transocean managed to chalk up an average shareholder return of 34.01%, adjusted based on awards methodology, making it the best performer in its category. The stock jumped from 45.5 sen (adjusted) on March 31, 2020, to 81 sen at end-March 2021, then surged to RM2.06 a year later, before easing to RM1.75 at end-March this year.
The group, which suffered a net loss of
RM5.61 million on revenue of RM19.98 million in FY2019, managed to trim its net loss to RM2.82 million in FY2020 on revenue of RM16.99 million. The following year, the group returned to the black with a net profit of RM1.37 million on sales of RM22.36 million. In FY2022, its bottom line further improved to RM1.76 million, as revenue expanded to RM28.88 million.
For FY2022, up to 64% or RM1.11 million of Transocean’s net profit came from its logistics business, which comprises road transport, air and sea freight, warehousing, logistics and customs and forwarding services, including cross-border transport to Singapore and Thailand.
Transocean is also involved in the selling of new tyres and the manufacturing and marketing of retreaded tires. Tyre brands under its belt include Bridgestone, Silverstone, Continental and Falken.
In 2021, the company acquired a 40% stake in Enfrasys Solutions Sdn Bhd, which provides cloud solutions to the private sector and government agencies, by way of share issuance. As a result of this acquisition, Enfrasys Consulting Sdn Bhd is now Transocean’s largest shareholder, with a 30.72% stake. Other substantial shareholders of Transocean are privately held Nadicorp Holdings Sdn Bhd, which has a 20.89% stake, and Areca Dynamic Growth Fund 7.0, with 5.38%.
Nadicorp is the vehicle of businessman Tan Sri Mohd Nadzmi Mohd Salleh. His son Ibrahim Aiman Mohd Nadzmi is managing director of Transocean.
Mohd Nadzmi is no stranger to Corporate Malaysia, having been CEO of Edaran Otomobil Nasional Bhd and Perusahaan Otomobil Nasional Bhd, as well as chairman of Proton Holdings Bhd. He was also a director of several well-known companies in the past, including Ranhill Utilities Bhd, JT International Bhd,
VS Industry Bhd and Ayer Hitam Tin Dredging Malaysia Bhd.
At end-2022, Transocean had cash and bank balances of RM4.44 million and fixed deposits of RM3.54 million with a licensed bank. On the other side of the balance sheet, the company had long-term debt commitments of RM501,630 and short-term borrowings amounting to RM243,030.
After closing its FY2022, Transocean said its prospects seemed good as it had become a registered bumiputera contractor with the Ministry of Finance, while it was making inroads into Kulim, Kedah, in time for the fourth phase of industrial land development in the rapidly developing Kulim Hi-tech Park. Other than that, Transocean’s setting up of a container depot in Butterworth, Penang, in February this year should augur well for the group.
“The management will continue to put focus on diversifying its business and strengthening efforts in sales and business development. Assets and cost optimisation will be another area of focus,” Transocean said in its 2022 annual report.
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