OilCorp II

Here's an update to OilCorp

Let's have a look at OilCorp's property section.

Posted on Business Times:

• D'Tiara's revenue may hit RM200m in 4 years
  By Roziana Hamsawi
  roziana@nstp.com.my
  
  July 16 2007
  
  OIL and gas support specialist Oilcorp Bhd expects its property subsidiary D'Tiara Corp Sdn Bhd's revenue to increase fivefold to RM200 million in four years.
  
  D'Tiara, which posted a revenue of some RM27 million last year, is confident that from 2011 onwards its revenue would be between RM150 million and RM200 million.
  
  Oilcorp executive director Phua Low Yiang said the confidence stems from the three projects that the company would soon undertake.
  
  They comprise a two-tower hotel suites and offices project at nearby KL Sentral, a leisure and health resort in Genting Highlands, Pahang, and a waterfront resort in Pulau Indah, Port Klang.
  
  Phua said total GDV for the three projects are currently estimated at RM1.3 billion and D'Tiara is in discussion for a listing on the Alternative Investment Market (AIM) of the London Stock Exchange to raise funds for the projects.
  
  "The intention is to list on AIM. We have nominated two advisers and are still in the midst of talks," Phua told Business Times in an interview.
  
  The 33-storey hotel and 33-storey office block project in Kuala Lumpur is expected to be launched early next month. The project's GDV is valued at RM330 million.
  
  The 14ha project in Genting Highlands, featuring bungalow lots and 20 resort villas, is still awaiting approval from the Securities Commission. Its GDV is estimated at about RM60 million.
  
  Both the projects are expected to be completed in 2010.
  
  The waterfront project in Pulau Indah meanwhile is a bigger version of the Tiara Beach Resort, which will incorporate an upmarket villa resort, canal bungalows for sale to the public and a commercial seafood centre.
  
  "Estimated GDV (of the Pulau Indah project) is RM890 million for the first 40ha of it while the remaining land will be developed only after the completion of the first phase," said Phua.
  
  He is confident that the project will change the public's perception of Pulau Indah and will be a centre of attraction.
  
  "The water there is still, calm and green. It is perfect for water sports," he said.
  
  All of the three projects will be sold to interested buyers who will then lease them back to D'Tiara.
  
  "This kind of model has worked well for us and for the investors too as they get good returns from this kind of arrangement," said Phua.
  
  Today, the bulk of D'Tiara's revenue comes from the two-year-old 980-room Tiara Beach Resort in Port Dickson, Negeri Sembilan.

Posted on the Edge.

• 16-07-2007: Oilcorp may list unit on AIM
  by Fintan Ng
  
  Oilcorp Bhd is contemplating listing its property arm, D'Tiara Corp Sdn Bhd, on the London Stock Exchange's Alternative Investment Market (AIM) in the third quarter (3Q) of next year.
  
  Oilcorp executive director Pua Yow Liang told The Edge Financial Daily the company was in the process of engaging an adviser for the proposed listing. He said a firm decision on the proposed listing would be made by September next year.
  
  "We have reached a stage where we can expand overseas and we would rather go to AIM," Pua said, adding that the Securities Commission was at present not too keen on the listing of property development entities.
  
  "We're launching three projects this year and next and that will require a lot of capital. These will give us a turnover in the next four to five years of up to RM1.2 billion, that's why we're planning to spin off the property arm and list it on AIM," he said.
  
  Currently, there are an estimated 98 pure property development companies listed on Bursa Malaysia.
  
  Pua said the amount to be raised and the percentage of shares Oilcorp would be retaining in the AIM-listed entity had not been determined. Other than property development and investment, Oilcorp's core businesses are in oil and gas, and fisheries.
  
  If successful, its property arm will follow in the footsteps of other Malaysian companies that have listed on AIM, namely Steppe Cement Ltd, Infoscreen Networks, Peninsular Gold, Velosi Ltd, GMO Ltd, Biofutures International, Mobility One Ltd and Plant Offshore Group Ltd.
  
  "We're injecting D'Tiara Beach Resort and three projects into the AIM-listed entity, which is valued at up to RM300 million, and an Oilcorp subsidiary will be set up to manage the company," Pua said.
  
  The three projects it will be launching are the 300-acre leasehold D'Tiara Waterfront Resort in Pulau Indah, Selangor with a gross development value of RM820 million for the first phase, the 2.19-acre freehold D'Tiara Hotel Suites in Brickfields with a GDV of RM320 million, and the 3.5-acre freehold Genting D'Tiara Leisure and Health Resort with a GDV of RM80 million.
  
  It also manages D'Tiara Beach Resort in Port Dickson, Negeri Sembilan on a sale-and-leaseback model.
  
  "We're positioning the property arm not only as a developer but also as a resort operator," Pua said.
  
  The residential property components of the Pulau Indah and Brickfields projects will be run on a sale-and-leaseback model with a guaranteed 7% net yield on five-plus-five-year leases.
  
  For the financial year (FY) ended Dec 31, 2006, the property arm contributed 15% of Oilcorp's revenue of RM153.23 million. Oilcorp posted a net profit of RM13.11 million in the same period.

Sounds extremely interesting eh?

Here are some links to OilCorp's recent earnings.

26th Feb 2007. Quarterly rpt on consolidated results for the financial period ended 31/12/2006

Click on the notes pdf file attached. See page 4.

Have a look at the screenshot below and check out OilCorp's property division.



Here's the link to their earnings in May 2007. Quarterly rpt on consolidated results for the financial period ended 31/3/2007. Again, have a look at the pdf file attached. Here's a screenshot of what I am looking at.

How?

• Oilcorp Bhd is contemplating listing its property arm, D'Tiara Corp Sdn Bhd, on the London Stock Exchange's Alternative Investment Market (AIM) in the third quarter (3Q) of next year.

Will OilCorp property arm be able to list on AIM next year? I have no idea but that's OilCorp's aim and yes it's always great to have a goal in each company but as it is, this property arm of theirs simply does not have a good track record, yes?

And yes OilCorp share has been rising.

All I can say is do not confuse a lousy share with a bull market!

In a hot market any share does stand a possibility of rising.

However, to use fundamental reasoning as a reason to buy this share is simply a pure insult to all investors!