Tengku Ibrahim to stay at helm of Petra Perdana

PETRA Perdana Bhd (7108), an offshore marine services provider, said Tengku Datuk Ibrahim Petra will continue to serve as the group's executive chairman and chief executive officer.

Tengku Ibrahim will also remain as executive chairman of Petra Energy Bhd, despite the group's sale of a 25 per cent stake in Petra Energy.

The market has been reacting negatively since Petra Perdana sold one-quarter of its stake or 48.8 million shares in subsidiary Petra Energy at RM1.91 a share on December 11.

Petra Perdana's stock price has fallen almost 22 per cent since the announcement, to close at RM1.23 yesterday with 13.3 million shares traded.
Shares of Petra Energy fell 7 per cent to close at RM1.71. Some 1.9 million shares exchanged hands.

Investors are concerned about the future of Petra Perdana as the disposal reduces Petra Perdana's stake in Petra Energy to 29.6 per cent, hence reducing Petra Energy to an associate.

To allay investor concerns, Petra Perdana yesterday issued a declaration to keep them informed of developments taking place in the firm, and the positive outlook of the oil and gas business, post-divestment.

"I have been involved in the oil and gas industry for over 21 years... and I've always delivered on my promises, and I will continue to deliver on them.

"There is no reason for the shareholders of Petra Perdana or Petra Energy to have any doubts now in the wake of the divestment of shares in Petra Energy," said Tengku Ibrahim.

"Of course, if you do an analytical review of the divestment exercise now, it may not look favourable. Let the restructuring be completed and and give it time for it to work. This is not an overnight remedy to generate immediate results. It is after all, a long term strategy," he added.

The group said it will continue to operate its business in the offshore marine industry, seeking opportunities in the domestic and regional markets.

It will also explore opportunities in the vessel charter business in line with the new deliveries and improving market conditions.

It said the divestment will allow Petra Perdana to re-strategise its operations independently and allow it to focus on the offshore marine business to ensure long term growth and sustainability.

The group added that the exercise will result in a win-win situation for all parties concerned given the business relationship between Petra Perdana and Petra Energy.