Borneo Oil back in black thanks to strong revenue growth

KUCHING: Borneo Oil Bhd, which owns franchised fast-food chain SugarBun, has returned to the black on strong revenue growth.

The group posted group’s pre-tax profit of RM3.61mil in the 12 months to last Jan 31, a reversal from pre-tax loss of RM7.82mil year-on-year as revenue grew by RM8.6mil or more than 25% to RM41.9mil from RM33.3mil.

Borneo Oil’s key earnings came from its expanding network of franchised SugarBun restaurants, which has grown to nearly 70, with the bulk in Sarawak. In 2013, the group opened 14 new outlets.

Besides Sarawak, where some 57 restaurants are located, SugarBun has operations in Brunei Darussalam, Johor, China, Australia and Bangladesh.

Reviewing its performance for the 2013 financial year, Borneo Oil said the group’s performance had continued to improve with additional contribution from the oil and gas and energy-related business segment which had commenced operation after years of planning.

The segment is involved in quarry operations in Sabah.

Last month, wholly-owned subsidiary Borneo Oil & Gas Corporation Sdn Bhd (BOG) announced it had been appointed as a sub-contract to carry out prospecting and mining of alluvial and lode gold in Mukim Batu Yon, Lipis District in Pahang.

BOG will make an initial commitment of RM15mil to start the business. Its agreement wth Champmark Sdn Bhd is for five years and renewable for another five years.

The mining area, which covers some 400 acres, was contracted to Champmark by MMC Corporation Bhd, which had leased it from Perbadanan Kemajuan Negri Pahang on a sole and exclusive right basis to carry out the prospecting and mining of minerals.

Going forward, Borneo Oil said with continued improvement in the performance of its various business segments, the group was optimistic of doing better.

“The board and management will continue its efforts to explore for new viable business opportunities to broaden the group’s earning base,” it added.

Meanwhile, Borneo Oil’s substantial shareholder had acquired an additional of 3.04 million shares at 67.5 sen each in the open market on March 17. This has boosted the company’s stake to 23.76 million shares or 10.55%.

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