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!