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When I was entrusted with the task to steer Perangsang Selangor to greater heights as the Chairman in March 2011, I agreed with the understanding that I could implement the turnaround over four Phases and four years.
The Phase 1 of the turnaround to improve the Corporate Structure and Organisational Structure of the Group was successfully completed with the appointment of new faces heading key positions within the Group.
We have also distinctly identified the profit and loss making subsidiaries and outlined strategic plans as well as policies for the turnaround plans. We have also reinforced the internal procedures, with the introduction of a new Standard Operating Procedure, Limits of Authorities and Financial Authority Limits.
Over this backdrop, the Group remains competitive by continuously seeking ways to enhance economic growth while at the same time, strengthening operational efficiency.
As part of the implementation of the Group's strategic initiatives, steps have been taken to unlock the latent value of its existing assets such as the divestment of KHSB, which resulted in an exceptional gain of RM284.35 million. Additionally, a joint development agreement has also been signed with a subsidiary of S P Setia Berhad for the re-development Perangsang Templer Golf Club (PTGC) into an environmentally friendly, eco-themed residential township. The development is expected to contribute positively to the Group upon its launch, which is currently expected to be in the first quarter of 2015.
The Group also took the opportunity to rationalise some of its underperforming assets with the divestment of its entire 16.92% equity stake in associate company, Taliworks Corporation Berhad, in October 2013. The rationalisation is also in line with the Group's plan to exit the water services sector upon the divestment of its investments in Konsortium ABASS Sdn Bhd (ABASS) and Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH) pursuant to the Selangor State Government's impending consolidation of the water services sector.
With the completion of the KHSB sale and the impending divestment of ABASS and SPLASH, the Group has been actively pursuing new investments to ensure that the Group's future revenue stream and profitability is preserved.
Perangsang Selangor's maiden foray into the oil and gas sector is through wholly-owned subsidiary, Perangsang Oil and Gas Sdn Bhd, which holds a 40% equity stake in NGC Energy Sdn Bhd (NGC Energy). NGC Energy commands the second largest share in the Malaysian domestic liquefied petroleum gas (LPG) market with its products sold under the "Mira" name. The company also distributes LPG to the industrial and commercial market. The company has already started to contribute positively to the Group's financial performance with a RM1.9 million share of profits. Moving forward, the Group expects to see increasing contribution from the oil & gas sector.
Perangsang Selangor's investment in the telecommunications sector is via Ceres Telecom Sdn Bhd, a newly established mobile service provider set up under a joint venture in a with Virgin Mobile Middle East and Africa. Ceres Telecom Sdn Bhd ("Ceres") launched its FRiENDi pre-paid mobile service in September 2013 and is expected to contribute positively to the Group's financial performance in 2016.
We will maintain the momentum to pursue other new business opportunities and continue to drive the Company towards the growth path to improve shareholders' value. With the impending divestment of the Group's investment in the water supply services, we are actively exploring various potential new businesses and investments as replacement.
YM RAJA HAJI IDRIS RAJA KAMARUDIN