PETALING JAYA: Enra Group Bhd intends to diversify its existing core businesses to include the maintenance, repair and overhaul (MRO) operations to improve its performance, which has declined in the past three financial years.
Enra is principally involved in the provision of energy services, property development, and investment holding. It intends to grow and expand its current MRO operations under its energy services segment to serve a wider range of industries, in addition to the oil and gas (O&G) industry. Currently, the group provides MRO services to its O&G customers to maintain and preserve diesel engines and generators.
Enra is collaborating with MTU Services (Malaysia) Sdn Bhd to pursue new projects and contracts in MRO services across various industries via MSMENRA Sdn Bhd. As at July 25, 2022, Enra’s wholly owned indirect subsidiary, Enra Energy Solutions Sdn Bhd, holds 70% equity interest in MSMENRA, and MTU Services holds the rest.
“The management believes that the nature of MRO business activities is stable and recurring due to the continuous need for ongoing maintenance of assets to keep operations running. An example of those assets includes diesel engines and generators (including ancillary and related equipment) in industries such as O&G, marine, industrial and agriculture,” Enra said.
Additionally, the group wishes to reduce its reliance on its existing businesses, especially the property development segment which has been affected by the Covid-19 pandemic. The pandemic had resulted in the group not being able to obtain timely approvals for its projects which in turn delayed its property launches.
Enra’s management believes that the proposed diversification may contribute 25% or more of the net profit of the group and result in a diversion of 25% or more of the net assets of the group towards MRO services.
Enra will seek approval from shareholders at an EGM for the diversification.
