Borneo Oil Berhad (BornOil) has announced a stellar set of results for its fourth quarter ended 30 June 2021, with profit before tax soaring more than 11 folds – or 1,114 percent – to RM35.41 million from the previous corresponding period (2020: RM3.18 million). This was on the back of revenue of RM15.82 million (2020: RM16.16 million) for the quarter.
Subsequently, BornOil posted group profit before tax of RM28.46 million for the financial year (2020: RM4.06 million), translating to earnings per share of 0.42 sen (2020: 0.03 sen).
BornOil attributed the sharp increase in profits due to fair value gain on investment in quoted securities of RM26.46 million, reversal of impairment loss of RM18.63 million and disposal of business assets of RM1.91 million.
Its resources and sustainable energy division, in particular, reported profit before tax of RM16.98 million for the quarter due to a gain of RM20.54 million on reversal of impairment loss and disposal of business assets.
In an earlier announcement, BornOil said that it is collaborating with Nevada-based Verde Resources of the United States on catalytic biofraction green technology initiatives.
This collaboration has enabled the group to penetrate the US market where global investors have been demanding for socially and environmentally conscious initiatives related to green sustainable products.
BornOil executive director Datuk Joseph Ambrose Lee said that the group has aspirations to be a global renewable energy player in the conversion of palm oil waste products to biomass, biochar, biogas, biofuel and wood vinegar.
Under the Biden Administration, the proposal of a US$2.25 trillion infrastructure plan will focus on green energy and decarbonisation.
BornOil’s other core business are limestone – it is the main and monopolistic supplier of limestone to the cement industry in Sabah and the BIMP-EAGA (Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area) – while the group is also sitting on some strategic properties in Sabah.
The group is also involved in gold mining and trading, while its food and franchise operations are spearheaded by the ‘Sugarbun’ management team.
BornOil’s ‘culture of innovation’ also resulted in the group launching the extremely popular Sabasco chilli sauce in recent weeks.
In an announcement to the stock exchange this evening (1 September), BornOil said that Datuk Ambrose had acquired a million shares today for RM35,000, or 3.5 sen per share.