Latest news with #KelingtonGroupBerhad
The Sun
03-07-2025
- Business
- The Sun
Kelington collaborates with Petronas CCS Solutions to explore carbon capture technologies
KUALA LUMPUR: Integrated engineering solutions provider, Kelington Group Berhad, via its subsidiary, Ace Gases Marketing Sdn Bhd has signed a memorandum of understanding (MoU) with Petronas CCS Solutions Sdn Bhd (PCCSS). The collaboration will explore joint value propositions through a feasibility study leveraging Ace Gases' expertise in carbon dioxide (CO₂) logistics and facility operations. This MoU will be valid for one year, with an option to extend for an additional year, subject to mutual agreement. The collaboration will focus on identifying potential synergies and opportunities in managing carbon emissions. The study will encompass the evaluation of technologies, facilities, feasibility, commercial aspects, funding opportunities, and relevant industries. Upon completion, it is anticipated that the study will provide a comprehensive assessment of the commercial and technical viability of developing joint value propositions in relation to the transport of carbon emissions. The findings may pave the way for potential future projects and collaborations between both parties, contributing to sustainable and innovative solutions for carbon management. The collaboration comes at a time when Malaysia's annual CO₂ emissions from fossil fuel and industrial activities reached 288.82 million tonnes in 2023 (Source: Our World In Data). This feasibility study marks a critical step toward developing a national carbon capture scheme. If successfully implemented, it will provide CO₂ emitters with viable pathways to sequester carbon emissions, directly supporting Malaysia's Paris Agreement commitment to reduce carbon intensity by 45% by 2030 and achieve net-zero emissions by 2050. Carbon sequestration is increasingly recognised as a solution for mitigating CO₂ emissions, particularly in hard-to-abate industries such as power generation, cement production, and oil and gas refining. The feasibility study will assess both the technical and commercial viability of deploying these solutions at scale. Kelington, through Ace Gases, is already actively involved in carbon capture, as it currently owns and operates two CO₂ manufacturing plants. These facilities receive CO₂ from Petronas' gas processing plants in Kerteh, Terengganu, which is then purified and liquefied for reuse across various industries, with a particular focus on the food and beverage sector. In parallel, Ace Gases is also exploring further utilisation pathways for the captured carbon, including the conversion of CO₂ into sustainable fuels such as green methanol, ammonia, and sustainable aviation fuel. These initiatives will further advance Malaysia's low-carbon transition and support the development of a circular carbon economy. Kelington Group Berhad CEO Raymond Gan said, 'We believe that the shift towards a low-carbon economy presents not only a responsibility but an opportunity for innovation and growth. As we confront the urgent challenges posed by climate change, technologies like carbon capture and storage have emerged as a vital solution for reducing greenhouse gas emissions.' 'By leveraging Kelington's established capabilities in industrial gas processing and engineering services with Petronas CCS Solutions industry-leading insights and resources, we are well positioned to develop effective and scalable carbon capture solutions. These solutions can significantly mitigate emissions and offer transformative potential across industries.' The collaboration aligns with Malaysia's National Energy Transition Roadmap, which outlines ambitious goals for achieving carbon neutrality by 2050. 'We are optimistic about the potential for collaboration on future projects with an industry leader like Petronas CCS Solutions. In line with the rising demand for low-carbon technologies, this collaboration will open new business opportunities, allow us to tap into diverse customer segments, and broaden our service offerings, paving the way for fresh revenue streams.' With the Malaysian government's planned introduction of a carbon tax by 2026, targeting the iron, steel, and energy sectors, Kelington is well-positioned to help industries lower their carbon emissions, hence reducing their carbon tax obligations. By providing effective carbon management solutions, the Group will enable businesses to navigate future tax structures while actively supporting Malaysia's broader goals for decarbonization on a global scale. At this juncture, this collaboration is not expected to have any financial impact on Kelington's earnings and net assets. Nonetheless, the Group views this collaboration as a strategic step in advancing its capabilities and positioning for long-term growth in the evolving carbon management sector.
The Sun
03-07-2025
- Business
- The Sun
Kelington, Petronas to explore carbon capture technologies
KUALA LUMPUR: Integrated engineering solutions provider, Kelington Group Berhad, via its subsidiary, Ace Gases Marketing Sdn Bhd has signed a memorandum of understanding (MoU) with Petronas CCS Solutions Sdn Bhd (PCCSS). The collaboration will explore joint value propositions through a feasibility study leveraging Ace Gases' expertise in carbon dioxide (CO₂) logistics and facility operations. This MoU will be valid for one year, with an option to extend for an additional year, subject to mutual agreement. The collaboration will focus on identifying potential synergies and opportunities in managing carbon emissions. The study will encompass the evaluation of technologies, facilities, feasibility, commercial aspects, funding opportunities, and relevant industries. Upon completion, it is anticipated that the study will provide a comprehensive assessment of the commercial and technical viability of developing joint value propositions in relation to the transport of carbon emissions. The findings may pave the way for potential future projects and collaborations between both parties, contributing to sustainable and innovative solutions for carbon management. The collaboration comes at a time when Malaysia's annual CO₂ emissions from fossil fuel and industrial activities reached 288.82 million tonnes in 2023 (Source: Our World In Data). This feasibility study marks a critical step toward developing a national carbon capture scheme. If successfully implemented, it will provide CO₂ emitters with viable pathways to sequester carbon emissions, directly supporting Malaysia's Paris Agreement commitment to reduce carbon intensity by 45% by 2030 and achieve net-zero emissions by 2050. Carbon sequestration is increasingly recognised as a solution for mitigating CO₂ emissions, particularly in hard-to-abate industries such as power generation, cement production, and oil and gas refining. The feasibility study will assess both the technical and commercial viability of deploying these solutions at scale. Kelington, through Ace Gases, is already actively involved in carbon capture, as it currently owns and operates two CO₂ manufacturing plants. These facilities receive CO₂ from Petronas' gas processing plants in Kerteh, Terengganu, which is then purified and liquefied for reuse across various industries, with a particular focus on the food and beverage sector. In parallel, Ace Gases is also exploring further utilisation pathways for the captured carbon, including the conversion of CO₂ into sustainable fuels such as green methanol, ammonia, and sustainable aviation fuel. These initiatives will further advance Malaysia's low-carbon transition and support the development of a circular carbon economy. Kelington Group Berhad CEO Raymond Gan said, 'We believe that the shift towards a low-carbon economy presents not only a responsibility but an opportunity for innovation and growth. As we confront the urgent challenges posed by climate change, technologies like carbon capture and storage have emerged as a vital solution for reducing greenhouse gas emissions.' 'By leveraging Kelington's established capabilities in industrial gas processing and engineering services with Petronas CCS Solutions industry-leading insights and resources, we are well positioned to develop effective and scalable carbon capture solutions. These solutions can significantly mitigate emissions and offer transformative potential across industries.' The collaboration aligns with Malaysia's National Energy Transition Roadmap, which outlines ambitious goals for achieving carbon neutrality by 2050. 'We are optimistic about the potential for collaboration on future projects with an industry leader like Petronas CCS Solutions. In line with the rising demand for low-carbon technologies, this collaboration will open new business opportunities, allow us to tap into diverse customer segments, and broaden our service offerings, paving the way for fresh revenue streams.' With the Malaysian government's planned introduction of a carbon tax by 2026, targeting the iron, steel, and energy sectors, Kelington is well-positioned to help industries lower their carbon emissions, hence reducing their carbon tax obligations. By providing effective carbon management solutions, the Group will enable businesses to navigate future tax structures while actively supporting Malaysia's broader goals for decarbonization on a global scale. At this juncture, this collaboration is not expected to have any financial impact on Kelington's earnings and net assets. Nonetheless, the Group views this collaboration as a strategic step in advancing its capabilities and positioning for long-term growth in the evolving carbon management sector.
Yahoo
08-05-2025
- Business
- Yahoo
We Think That There Are Some Issues For Kelington Group Berhad (KLSE:KGB) Beyond Its Promising Earnings
The recent earnings posted by Kelington Group Berhad (KLSE:KGB) were solid, but the stock didn't move as much as we expected. We believe that shareholders have noticed some concerning factors beyond the statutory profit numbers. Our free stock report includes 1 warning sign investors should be aware of before investing in Kelington Group Berhad. Read for free now. KLSE:KGB Earnings and Revenue History May 7th 2025 In order to understand the potential for per share returns, it is essential to consider how much a company is diluting shareholders. Kelington Group Berhad expanded the number of shares on issue by 9.0% over the last year. Therefore, each share now receives a smaller portion of profit. Per share metrics like EPS help us understand how much actual shareholders are benefitting from the company's profits, while the net income level gives us a better view of the company's absolute size. Check out Kelington Group Berhad's historical EPS growth by clicking on this link. A Look At The Impact Of Kelington Group Berhad's Dilution On Its Earnings Per Share (EPS) Kelington Group Berhad has improved its profit over the last three years, with an annualized gain of 329% in that time. In comparison, earnings per share only gained 309% over the same period. And in the last year the company managed to bump profit up by 19%. But in comparison, EPS only increased by 14% over the same period. So you can see that the dilution has had a bit of an impact on shareholders. Changes in the share price do tend to reflect changes in earnings per share, in the long run. So it will certainly be a positive for shareholders if Kelington Group Berhad can grow EPS persistently. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Kelington Group Berhad's Profit Performance Kelington Group Berhad shareholders should keep in mind how many new shares it is issuing, because, dilution clearly has the power to severely impact shareholder returns. Because of this, we think that it may be that Kelington Group Berhad's statutory profits are better than its underlying earnings power. But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Every company has risks, and we've spotted 1 warning sign for Kelington Group Berhad you should know about.
Yahoo
17-04-2025
- Business
- Yahoo
Kelington Group Berhad (KLSE:KGB) jumps 16% this week, though earnings growth is still tracking behind five-year shareholder returns
Buying shares in the best businesses can build meaningful wealth for you and your family. And we've seen some truly amazing gains over the years. Just think about the savvy investors who held Kelington Group Berhad (KLSE:KGB) shares for the last five years, while they gained 500%. And this is just one example of the epic gains achieved by some long term investors. Better yet, the share price has risen 16% in the last week. Since the stock has added RM298m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. Our free stock report includes 1 warning sign investors should be aware of before investing in Kelington Group Berhad. Read for free now. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During five years of share price growth, Kelington Group Berhad achieved compound earnings per share (EPS) growth of 33% per year. This EPS growth is slower than the share price growth of 43% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). It is of course excellent to see how Kelington Group Berhad has grown profits over the years, but the future is more important for shareholders. This free interactive report on Kelington Group Berhad's balance sheet strength is a great place to start, if you want to investigate the stock further. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Kelington Group Berhad the TSR over the last 5 years was 559%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! We're pleased to report that Kelington Group Berhad shareholders have received a total shareholder return of 21% over one year. And that does include the dividend. However, that falls short of the 46% TSR per annum it has made for shareholders, each year, over five years. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand Kelington Group Berhad better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Kelington Group Berhad you should know about. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
19-02-2025
- Business
- Yahoo
Declining Stock and Solid Fundamentals: Is The Market Wrong About Kelington Group Berhad (KLSE:KGB)?
It is hard to get excited after looking at Kelington Group Berhad's (KLSE:KGB) recent performance, when its stock has declined 1.7% over the past three months. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Kelington Group Berhad's ROE in this article. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits. Check out our latest analysis for Kelington Group Berhad ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Kelington Group Berhad is: 29% = RM123m ÷ RM429m (Based on the trailing twelve months to September 2024). The 'return' is the amount earned after tax over the last twelve months. That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.29 in profit. So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. First thing first, we like that Kelington Group Berhad has an impressive ROE. Second, a comparison with the average ROE reported by the industry of 9.7% also doesn't go unnoticed by us. Under the circumstances, Kelington Group Berhad's considerable five year net income growth of 42% was to be expected. Next, on comparing with the industry net income growth, we found that Kelington Group Berhad's growth is quite high when compared to the industry average growth of 14% in the same period, which is great to see. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Kelington Group Berhad is trading on a high P/E or a low P/E, relative to its industry. Kelington Group Berhad's three-year median payout ratio is a pretty moderate 29%, meaning the company retains 71% of its income. So it seems that Kelington Group Berhad is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered. Besides, Kelington Group Berhad has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 29%. Accordingly, forecasts suggest that Kelington Group Berhad's future ROE will be 29% which is again, similar to the current ROE. On the whole, we feel that Kelington Group Berhad's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
