MARKET DEVELOPMENT
Green Ocean Shifts Into High Gear to Turn Around
Green Ocean Shifts Into High Gear to Turn Around
28/09/2015 (The Sun) - Green Ocean Corp Bhd aims to go "full swing" in ramping up its production capacity to pave the way for its turnaround.
At a press conference after the company's AGM last Friday, managing director Datuk Frankie Tan See Meng said the equipment upgrading is aimed at improving production costs with better economies of scale.
"Production not been viable as the costs are high. I am trying to reduce the costs. We're doing trials now, and by next month we'll know the results."
For the first quarter ended June 30, 2015, Green Ocean, which has been making losses in the past seven financial years, swung back to the black with a net profit of RM443,000 versus a net loss of RM591,000 in the previous corresponding period, mainly due to an one-off gain of RM790,000 derived from disposal of subsidiaries, offsetting losses of continuing operations of RM350,000.
Its net loss for the financial year ended March 31, 2015, meanwhile, narrowed to RM706,000 from RM5.49 million a year before.
Green Ocean is mainly involved in palm kernel crushing, refining of palm oil, palm kernel oil and production of premium health balanced cooking oil. Its main customer is Tan's privately-owned Sawit Raya Sdn Bhd, which is also in the palm oil trading and refinery activities.
Tan owns a 15.38% stake in Green Ocean.
Tan said the company is seeking RM20 million to RM30 million in bank loans to increase its production capacity.
"Now we're doing the turnover to let the banks to have confidence in us. We've applied for two to three loan facilities. It can't depend all on my company, (there is) conflict of interest," he added.
Despite the low crude palm oil prices currently, Tan opined that Green Ocean's business operations will not be affected as demand is always there and it will be even cheaper for overseas buyers with the weakening of the ringgit.
"The profit margin is the same no matter palm oil prices are up or down because all the time you have buyers," he said.
Meanwhile, he reiterated that he has no plans to inject Sawit Raya into Green Ocean or to transfer the listing status to Sawit Raya.
"No, I'm not going to inject anything, If I (had wanted to list Sawit Raya I would have done it in) 2011. I like to go on my own and work independently," he said.
At a press conference after the company's AGM last Friday, managing director Datuk Frankie Tan See Meng said the equipment upgrading is aimed at improving production costs with better economies of scale.
"Production not been viable as the costs are high. I am trying to reduce the costs. We're doing trials now, and by next month we'll know the results."
For the first quarter ended June 30, 2015, Green Ocean, which has been making losses in the past seven financial years, swung back to the black with a net profit of RM443,000 versus a net loss of RM591,000 in the previous corresponding period, mainly due to an one-off gain of RM790,000 derived from disposal of subsidiaries, offsetting losses of continuing operations of RM350,000.
Its net loss for the financial year ended March 31, 2015, meanwhile, narrowed to RM706,000 from RM5.49 million a year before.
Green Ocean is mainly involved in palm kernel crushing, refining of palm oil, palm kernel oil and production of premium health balanced cooking oil. Its main customer is Tan's privately-owned Sawit Raya Sdn Bhd, which is also in the palm oil trading and refinery activities.
Tan owns a 15.38% stake in Green Ocean.
Tan said the company is seeking RM20 million to RM30 million in bank loans to increase its production capacity.
"Now we're doing the turnover to let the banks to have confidence in us. We've applied for two to three loan facilities. It can't depend all on my company, (there is) conflict of interest," he added.
Despite the low crude palm oil prices currently, Tan opined that Green Ocean's business operations will not be affected as demand is always there and it will be even cheaper for overseas buyers with the weakening of the ringgit.
"The profit margin is the same no matter palm oil prices are up or down because all the time you have buyers," he said.
Meanwhile, he reiterated that he has no plans to inject Sawit Raya into Green Ocean or to transfer the listing status to Sawit Raya.
"No, I'm not going to inject anything, If I (had wanted to list Sawit Raya I would have done it in) 2011. I like to go on my own and work independently," he said.