KUALA LUMPUR: KNM and Zecon shares advanced on Tuesday, July 26 after they inked heads of agreements with Gulf Asian Petroleum Sdn Bhd to undertake the projects worth RM17 billion at Teluk Ramunia.
At 10.25am, KNM added 10 sen to RM1.85 while Zecon rose 10.5 sen to 58.5 sen.
The agreements were to build a 150,000/200,000 bpd petroleum refinery and 400,000/525,000 mtpa polypropylene unit for GAP with a total project value of US$5 billion (RM15 billion).
The other project is to construct a petroleum product storage terminal facility comprising four terminals with a total storage capacity of 2.328 million cubic metres, with supporting infrastructure and auxiliaries worth RM2 billion.
For the refinery project, KNM said it would together with Zecon and/or a Korea or Chinese contractor set up a consortium to undertake the refinery project.
ECM Libra Research has upgraded KNM to Trading Buy from Hold with higher target price of RM2.25 from RM1.68 previously.
However, it cautioned that KNM has an existing orderbook of RM5.4 billion that had yet to yield steady profits.
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