KUALA LUMPUR (March 11): Oil and gas pipe supplier Saliran Group Bhd (KL:SALIRAN), which is scheduled for listing on the ACE Market this Thursday, posted a RM3.72 million profit for the fourth quarter ended in Dec 31, 2024 (4QFY2024).

Quarterly revenue stood at RM95.57 million, according to its filing with Bursa Malaysia on Tuesday. Earnings per share stood at 1.23 sen.

For its financial year ended Dec 31, 2024 (FY2024), the group recorded a profit of RM13.24 million and revenue of RM344.52 million.

There were no comparative figures provided for the corresponding period a year ago.

The group recorded a profit before tax of RM6.05 million for the same quarter and RM20.08 million for FY2024 after deducting an expense.

The expense mainly comes from staff costs and directors’ remuneration, realised losses on foreign exchange, asset depreciation (property, plant and equipment, investment properties and right-of-use assets) and listing expenses.

The company did not declare any dividend for the current financial quarter under review.

According to its prospectus, the group is optimistic about its prospects in supply and distribution of pipes, fittings, flanges and steel products for the oil and gas industry, leveraging its competitive strengths.

It cited Malaysia’s economy is projected to grow between 4.5% and 5.5% in 2025, driven by domestic spending, the government's frugal policies, sustained growth from the domestic oil and gas industry and infrastructure development.

The RM86 billion development expenditure allocation in Budget 2025 increases construction activities, while the upcoming 2026 carbon tax on steel presents both challenges and opportunities.

For its latest quarter, Malaysia was the group's largest market as it accounted for 63.26% or RM60.45 million of total revenue (RM95.57 million), and 66.06% or RM227.56 million of total revenue (RM344.52 million) for FY2024.

Meanwhile, Indonesia, as the group's second largest market, contributed 36.10% or RM34.51 million of total revenue in 4QFY2024 and 33.39% or RM115.02 million in FY2024.

Other countries such as Singapore, China, Vietnam, Thailand and Bahrain recorded the remaining revenue of RM604,000 or 0.6% of total revenue in 4QFY2024 and RM1.94 million or 0.5% of total revenue in FY2024.

Saliran is a supplier and distributor of pipes, fittings and flanges, as well as related parts and accessories, and steel products. The company has more than 19,000 unique products used in the oil and gas industry to support processing, refining and manufacturing activities.

Saliran has set its initial public offering (IPO) price at 27 sen apiece, to raise up to RM32 million.

The public issue comprising 80.4 million new shares will raise RM21.7 million, according to its prospectus launched on Feb 19. An offer for sale of 38.29 million existing shares, meanwhile, will gross about RM10.3 million for its selling shareholder.

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