Globaltec optimistic of turning around next year

SUBANG JAYA: Globaltec Formation Bhd is positive of turning around next year, following its efforts to dispose of its non-profitable business, streamline its products, reduce head counts and improving productivity.
“We will see improvement in our operating results (in FY16) given all of the efforts that we have made,” group executive chairman Datuk Seri T.C. Goh told reporters at its AGM here yesterday.
He said the group is constantly on the lookout for opportunities to further divest, downsize or cease its non-profitable assets and business.
Globaltec’s net loss widened to RM41.3 million for the financial year ended June 30, 2015 (FY15), from RM37.2 million in FY14, due mainly to decrease in revenue contributions from all divisions within its integrated manufacturing segment (IMS).
For the first quarter ended Sept 30, 2015 (Q1FY16), Globaltec made a net profit of RM1.1 million, compared with a net loss of RM1.07 million in the previous corresponding quarter, on the back of better margins earned and favourable foreign exchange rates.
On its automotive business, Goh said the group is planning to expand the business regionally, particularly Indonesia, as part of the group’s strategy to diversify its customer portfolio.
Commenting on its foray into the energy business in Indonesia, Goh said the business is still in the exploration stage, noting the need to achieve a certain milestone before the company goes into full commercialisation.
“As we briefed (our) shareholders, we anticipate full commercialisation by early 2018. By then, we hope that the energy segment revenue will contribute substantially to our top line,” he added.
In 2014, the company acquired a 55% direct interest in NuEnergy Gas Limited (NGY), a company listed on the Australian Security Exchange.
NGY is principally a gas and ancillary power generation development company with an immediate focus on establishing unconventional gas E&P in Indonesia.
Currently, Goh said, the company’s oil and gas exploration activity is focused in six areas in Indonesia, covering south Sumatra, central Sumatra and Kalimantan, an area of 5,500 sq km in total.