Where is the OIL?

I was looking at Naim Indah performance since March 2006.

1. Quarterly rpt on consolidated results for the financial period ended 31/3/2006 (May 2006)

Sales Turnover 1.280 million (yes, do click on that link! Naim's turnover was a mere 1.280 million!). Naim reported a loss of 167k.

2. Quarterly rpt on consolidated results for the financial period ended 30/6/2006 (Aug 2006)

Sales Turnover 2.106 million. Loss 868k.

3. Quarterly rpt on consolidated results for the financial period ended 30/9/2006 (Nov 2006)

Sales Turnover 7.361 million. Profit 2.073 million! (Saw some disposal of property!)

4. Quarterly rpt on consolidated results for the financial period ended 31/12/2006 ( Feb 2007)

Sales Turnover 5.597 million. Profit 580k! (Full year net profit of 656k!)

5. Quarterly rpt on consolidated results for the financial period ended 31/3/2007 ( May 2007)

Sales Turnover 1.899 million. Loss 496k.

6. Quarterly rpt on consolidated results for the financial period ended 30/6/2007 (Aug 2007)

Sales Turnover 905k!!!!!!!!!! Loss 278k.

WOW!!!!!!!

Half year sales turnover was only 2.80 million!

And this company is listed on Bursa Malaysia Main Board??????!!!

So why I am blogging on this stock?

Well, the recent surging high crude oil got me thinking of an old blog posting on Naim Indah: NiCorp and Ze Sauce: Part II

Let me reproduce what was written back then.

Last Friday, Oct 7th 2005, there was an article on Star Biz on Nicorp. See: Nicorp bids for contracts in O&G Sector

• “Naim Indah is very happy with its performance. The company's plans to venture into the oil and gas sector is a diversification strategy,” said a source close to the company.
  
  He said that venturing into this sector was a right move following the surge of oil prices.
  
  Naim Indah is believed to be close to securing local contracts worth several hundred million ringgit.
  
  As of end March this year, Naim Indah posted a net profit of RM6mil on the back of RM22.3mil in revenue. Its debts stood at RM2.8mil with RM137,000 in finance costs. Securing any contracts in this sector is expected to be significant for Naim Indah as it can mark a turning point for the company.

Ok, I was appalled with the 'Naim Indah is very happy with its performance' statement.

Why?

Back then, Naim only has a sales revenue of around 3.71 million for the first half of the year. And a loss of 709k for the first half of the year!

How could anyone be happy with such a performance?

And then the issue of oil!

• Naim Indah is believed to be close to securing local contracts worth several hundred million ringgit.

Where's the oil contracts?

And the following comments were taken from Naim's recent earnings notes.

• For the current financial period ended 30 June 2007, the Group’s revenue was RM2.80 million compared to RM3.39 million in the preceding financial period ended 30 June 2006. The decrease in revenue was mainly due to the Group’s inability to extract any round timber logs, as the Group was still waiting for the final issuance of permit prior to logging.
  
  The Group recorded a loss before tax of approximately RM0.67 million compared to a loss before tax of approximately RM1.95 million for the corresponding preceding financial period ended 30 June 2006, which was mainly due to the recognition of loss from property development segment during the corresponding preceding period ended 30 June 2006.

No traces of oil contracts to be seen!

And the local press even decided to highlight this oil issue back then!

• Saturday August 27, 2005
  
  Naim Indah's wise choice in oil and gas
  
  BY JOSE BARROCK
  
  NOBODY had bat an eyelid when little-known timber concession holder and property development company Naim Indah Corp Bhd announced recently that it has acquired a company with the intention of venturing into the oil and gas sector.
  
  What was then largely dismissed as a company jumping into the oil and gas bandwagon may just turn out to be a strategic move as sources say Naim Indah is close to inking a RM500mil contract for value added services in the sector in the Middle East. Industry sources say the announcement will be made mid September.

And the following snapshot of Naim's stock price performance back in 2005, showed how nicely Naim moved up thanks to this rm500 contract report BASED ON SOURCES!

See how Naim stock price surged thanks to such reports?

ps. back in Dec 2006, another oil article was published! No kidding!

Article in the New Straits Times - "Naim Indah eyes oil, gas trade"

• The Board of Directors of Naim Indah Corporation Berhad ("Nicorp or the Company") would like to announce, in response to Bursa Malaysia Berhad’s query dated 8 December 2006 (Ref: MN-061208-37750), that the company received a proposal on 6 December 2006 from one Encik Nasir Bin Abdul Rahman, the Chief Planning Officer of Mycorp Oil & Gas Sdn Bhd inviting Nicorp to jointly acquire a stake in Ifatech Global (M) Sdn Bhd whose principal activity is that of petroleum products trading and to jointly set-up with Mycorp Oil & Gas Sdn Bhd a fuel blending plant in Batam, Indonesia.
  
  Nicorp on 8 December 2006 has assembled an in-house evaluation team to perform an in-depth study of the above proposal, and the study is expected to take at least twelve (12) weeks before a report can be tabled for Nicorp’s Board consideration.
  
  Further announcements on any material developments on this matter shall be announced as and when they fall due.
  
  This announcement is dated 11 December 2006.

So where is the oil?