SMJSB declares maiden RM50 million dividends to Sabah Government

31 October 2023

By Wartawan Nabalu News

KOTA KINABALU: SMJ Sdn Bhd (SMJSB), a state-owned government-linked company (GLC) has declared its maiden dividend of RM50 million to the Sabah State Government for the financial year ending Dec 31, 2023.

The dividend was derived from the surplus funds resulting from the strong cash flows of the company’s two recently acquired assets - Samarang Production Sharing Contract (PSC) and Sabah Ammonia Urea Plant (SAMUR), after taking into account financial and work commitments of its ongoing and planned activities.

The mock cheque was presented to Chief Minister Datuk Seri Hajiji Noor which was received by Sabah Finance Minister and SMJSB Chairman Datuk Seri Masidi Manjun, who represented the Chief Minister at the event, today.

SMJSB Chief Executive Officer Dr Dionysia Kibat said the company had sold two cargoes of crude oil, totalling about 600,000 barrels, to Shell International Eastern Trading Company since the acquisition of 50 per cent participating interest in the Samarang PSC in May this year.

“The first was sold for about USD28 million (RM134 million) and the second for about USD30 million (RM144 million) on Oct 24,” she said.

She added that SMJSB also expected strong cash flows from its 25 per cent equity stake in SAMUR, which had an annual historical cash payout of approximately RM650 million per-year.

“Based on publicly available records, SMJSB expects a similar amount this year and will receive 25 per cent of the cash payout from its equity stake in SAMUR,” she said.

Kibat also announced that SMJSB had successfully priced its inaugural RM900 million Islamic medium-term notes, which was issued out of the AAA-rated Multi-Currency Sukuk Wakalah Programme of RM10 billion.

“This first issuance was 3.9 times oversubscribed with a total book of RM3.5 billion,” she said.

In another development, SMJSB officially acquired Sabah International Petroleum Sdn Bhd (SIP) on Oct 25, which holds a 10 per cent stake in Petronas LNG9 Sdn Bhd that operates an LNG plant within the Bintulu LNG complex.

SIP received RM216.7 million income from its 10 per cent equity interest in the LNG9 venture last year. A higher amount is expected this year due to the stronger market conditions. SMJSB will use dividends received from LNG9 to help fund the SIP acquisition.

Masidi noted that the company’s commendable achievements to date, following the formation of the company less than two years ago, proved that Sabah was on a clear upward trajectory and had the confidence and support of the investment community.

He further added that by upholding best practices, corporate governance and sound financial management, the state was definitely an attractive investment destination for all.