MY Morning Wrap | Malaysia Records Over 1 Bil Barrels of Oil Equivalent Exploration Discoveries in 2023

The $S&P 500 Index (.SPX.US)$ rose 0.6% to 4,594.63 on the first trading day of December, while the $Dow Jones Industrial Average (.DJI.US)$ increased 0.8% to 36,245.50. All sectors advanced except for communication services.

$PETGAS (6033.MY)$: Petronas, along with its petroleum arrangement contractors, has made 19 exploration discoveries and two exploration-appraisal successes in Malaysia, contributing over 1.0 billion barrels of oil equivalent (bboe) of new resources in 2023. This achievement is the result of an intensified exploration programme pursued by the national oil company in recent years, leading to the drilling of 25 wells - the highest number of exploration wells drilled in a single year since 2015. Petronas emphasized that more than half of the discoveries were made in the Sarawak Basin, primarily in two clusters within the Balingian and West Luconia geological provinces.

$CDB (6947.MY)$: CelcomDigi Bhd via its wholly-owned Infranation Sdn Bhd, Maxis Bhd, Telekom Malaysia Bhd, YTL Power International Bhd's 60%-owned YTL Communications Sdn Bhd and U Mobile Sdn Bhd will take up the equity stakes in the government-owned 5G network infrastructure outfit. The five mobile network operators inked the subscription agreements (SSAs) with Digital Nasional Bhd (DNB) and the Ministry of Finance Incorporated to subscribe to a 14% stake each in the network, while the remaining 30% will be retained by Putrajaya, accompanied by a golden share, according to Communications and Digital Minister Fahmi Fadzil. In exchange for the respective 14% stakes, each telco will inject RM233 million into DNB, which it would be used to meet DNB's funding requirements.

$AXIATA (6888.MY)$: Axiata Group Bhd announced its decision to sell its stake in Ncell Axiata Bhd after facing seven tumultuous years in Nepal. The company plans to divest its shares in Reynolds Holdings Ltd, which holds an 80% stake in Ncell Axiata, and exit the country. According to the group, this decision was made after a comprehensive assessment of the current business environment in Nepal. The group concluded that continuing operations under the current conditions of unjust taxation and regulatory uncertainties would no longer be feasible. Therefore, the group decided to withdraw from Nepal to ensure sustainable business operations.

$YINSON (7293.MY)$: Yinson Production, the offshore production business unit of Yinson Holdings Bhd, has made an investment in Carbon Removal AS, a Norway-based company that is at the forefront of developing direct air capture (DAC) projects. This strategic investment by Yinson Production signals its strong commitment to creating decarbonisation solutions for the offshore production industry. The investment will also aid in expanding the company's expertise and knowledge in this domain, opening new business opportunities and enabling Yinson Production's participation in the carbon credit value chain.

$AHEALTH (7090.MY)$: Apex Healthcare Bhd has put forth a proposal to acquire industrial land in Melaka for RM66.5 million from Panasonic Appliances Refrigeration Devices Malaysia Sdn Bhd (PAPRDMY). The proposed site is strategically located across the road and only 400 meters from the current production site of its wholly-owned subsidiary Xepa-Soul Pattinson (Malaysia) Sdn Bhd. This proximity offers significant benefits, such as minimizing duplication of support services required if expanded production facilities are constructed at a distant site, enabling lean management.

$CITAGLB (7245.MY)$: Citaglobal Bhd, along with its consortium partner TIZA Global Sdn Bhd, has recently signed a 40:60 joint development agreement with Abu Dhabi Future Energy Company PJSC (Masdar), a leading clean energy player. The agreement pertains to the development of a two-gigawatt solar farm project in Pahang, which is valued at US$2 billion (RM9.75 billion) .

$PANSAR (8419.MY)$: Pansar Bhd has secured a contract for road construction works in Sarawak valued at RM107.5 million. Its unit Perbena Emas Sdn Bhd received the contract from Jabatan Kerja Raya Sarawak. The scope of work includes the construction and completion of approach roads, comprising a new JKR R5 standard two-lane carriageway for the Sebuyau and Triso side. The contract period is 32 months and the project is scheduled to commence in December 2023.

$CRESBLD (8591.MY)$: Crest Builder Holdings Bhd, a construction and engineering contractor, has acquired the remaining 49% equity interest in its indirect subsidiary Unitapah Sdn Bhd for RM43.61 million in cash. Unitapah holds a 23-year concession to develop and maintain Universiti Teknologi MARA's (UiTM) campus in Tapah, Perak. The stake was acquired from Detik Utuh Sdn Bhd by Crest Builder International Sdn Bhd, which is wholly-owned by Crest Builder Holdings. As a result of the transaction, Unitapah has become a wholly-owned subsidiary of Crest Builder International. The acquisition is expected to strengthen the group's future earnings base and enhance its cash flow arising from the concession arrangement.