IJM Corp Bhd expects revenue contribution from its overseas operations to grow to 50% from the slightly below 20% now, chief executive officer and managing director Datuk Krishnan Tan said.
“We've got a very active bidding programme offshore. We're slowly building to a 50:50 level of contribution – 50% of local business and 50% of offshore business,” he said, but declined to provide a timeframe.
Tan was speaking to reporters after the signing ceremony for the company's RM300mil nominal value commercial papers and medium-term notes programme.
IJM's focus was on India and the Middle East, including Bahrain, Qatar and Dubai, he said, adding that over the last two months, it had submitted bids for overseas jobs worth in excess of RM3bil, of which about RM2bil was for contracts in India.
“We're bidding for pay roads in India and also a few building jobs in the Middle East; so, hopefully, in the next one to two months, we will get something,” Tan said, adding that based on past experience, the success rate was 20% to 30%.
He said the company's involvement in India was not limited to construction but included property development as well.
On the local front, he said the focus had shifted to property development, including high-end office buildings and condominiums, as Government-related contracts were decreasing.
On the company's performance, Tan said the financial year ended December 2004 was expected to be better than the year before, when it reported pre-tax profit of RM206.8mil and sales of RM1.36bil.
For the nine months to September 2004, IJM posted a pre-tax profit of RM172.95mil and sales of RM971.12mil.
The proceeds from the proposed five-year RM150mil commercial papers and seven-year RM150mil medium-term notes would be used to refinance existing bonds and as working capital, Tan said.
CIMB Bhd and AmMerchant Bank Bhd are the joint lead arrangers for the issuance.
“As one of the early issues of 2005 and with the expectation of rising interest rates in the latter half of the year, the IJM commercial papers and medium-term notes are well timed to garner strong interest from market participants, and to obtain competitive pricing,” CIMB deputy chief executive Charon Wardini Mokhzani said.
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