Wednesday, May 28, 2008

More Typical Poor Financial Reporting Again!

Published on the 26th May 2008: Kencana close to getting RM500m contract


  • 26-05-2008: Kencana close to getting RM500m contract
    by Jose Barrock

    KUALA LUMPUR: Kencana Petroleum Bhd is said to be close to sealing a RM500 million contract for the fabrication of multiple well-head platforms from Shell Oil and Gas (Malaysia) LLC and Sarawak Shell Bhd, industry sources said.

    The platforms are to be used for the F-28 and Cili Padi petroleum and gas field developments, offshore Bintulu in Sarawak.

    Exploration of the Cili Padi field is being conducted by Shell Oil and Gas (Malaysia), a joint venture between Shell, state-controlled oil major Petroliam Nasional Bhd (Petronas) and Nippon Oil Corp. It is located about 153km off the shore of Bintulu.

    The F-28 field, operated by a joint venture between Sarawak Shell Bhd and Petronas’ unit Petronas Carigali Sdn Bhd, is located about 180km northwest of Bintulu.

    It is believed that a letter of intent (LOI) was given to Kencana in relation to this project last month. CIMB Investment Bank had, in a research report late last month, stated that the LOI had been given for the project.

    Assuming the LOI for the well-head platforms contract is converted into a Letter of Award, Kencana’s fabrication order book could be nudged up to the RM1.6 billion mark.

The classic nonsense of it is believed and according to sources yet again!

Come on, who are these sources man????

And given the history of poor reporting from this very same reporter, it was NOT a surprise for me to read that Kencana denies winning Shell contract this morning.

  • KENCANA Petroleum Bhd, a Malaysian oil and gas services provider, denied a report in a local newspaper it won a RM500 million(US$154 million) contract from Shell Oil & Gas Malaysia LLC and Sarawak Shell Bhd.“Neither the company nor any of its subsidiaries has received any letter of intent,” Kencana said in a statement to the stock exchange yesterday. - Bloomberg

Now I just wonder why no action is taken against this reporter for all his continued 'according to sources' articles?

And doesn't it really renders our financial news useless when companies, such as Kencana here, denies what's written by the said reporter?

Sigh!

7 comments:

Seng said...

Hmmnn ... Jose, Jose again ...

You know, everytime I read this, I'm beginning to subconsciously and automatically substitute the phrase "industry sources said" with "the toilet cleaner said" ...

After all, toilet cleaners works in the industry too right? (wink)

Sigh. Why are these sources so afraid to identify themselves?

And why is Kencana share price peaked yesterday, and at the time of writing, is lower?

Those who writes these articles and disseminates these articles systematically should be investigated ...

Seng.

RR said...

Indeed,

Thats why, investor/trader should
do their homework on the reliability, credibility of the article.

In this article, Moola did a good job in pointing out the reliability of the article. "according to sources.. industry sources said.. it is believed." Thank you for the heads up.

I need to learn from seng to automatically substitute the phrase "industry sources said" with "the toilet cleaner said.."

*Don't get me wrong, I have No discrimination against toilet cleaner.

:)

Moolah said...

Dear RR,

If you have a time to read, I do dedicate a long, old posting to you.

http://whereiszemoola.blogspot.com/2007/06/do-you-think-that-bursa-should-take.html

RR said...

LoL..

I did not know that Mr. Jose has so much of reports from him.

This "Mr Sources Said" is just increadible.

*/me taking out a notebook and jot down
"don't believe fully on what you see and hear in the stock market"
"exercise your own due diligence"

-RR-

The Wanderer said...

According to a blogger, poor financial reporting is rampant in Malaysia.

A source commented that it is unavoidable because it has to be precisely vague in order to generate some positive interest in the stock market.

It is believed that the good feelings generated can contribute to wealth building effect to certain pockets of vested interest group.

Very sorry, i really know not what i'm talking about.

peisheah said...

Moola, you wrote about Yikon. Is it related to this scam?

Is investment in G-Gold Gallery Sdn Bhd a scam?

http://announcements.bursamalaysia.com/EDMS%5Cannweb.nsf/LsvAllByID/482568AD00295D074825717000405888?OpenDocument

http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=1233

Moolah said...

Dearest Peisheah,

Not exactly sure since this happened quite some time ago.

All i know is Yikon earnings performance has been really terrible.

rgds