Ancom Nylex Berhad (ANB) signed two separate Sale and Purchase Agreements with PETRONAS Chemicals Marketing (Labuan) Ltd. (“PCML”) for the supply of Methanol over a five-year term.
The agreements were affirmed by Ancom’s wholly owned subsidiary Perusahaan Kimia Gemilang Sdn. Bhd. (PKG) with 51% owned Ancom Kimia Sdn. Bhd. (“]AKSB) and PCML commencing from 1 January 2023 to 31 December 2027.
Both PKG and AKSB are engaged in the trading and distribution of petrochemicals and other industrial chemical products.
Under the terms of the Contract, PCML will supply the following quantity of Methanol in the year 2023 to PKG in the amount of 148,000 to 184,000 metric tonnes and to AKSB in the amount of 92,000 to 114,000 metric tonnes at a price to be determined based on the formula specified in the contract.
For the following contract years from 2024-2027, the quantity of Methanol for each year shall be in the amount of: PKG: 150,000 – 250,000 MT; and AKSB: 90,000 – 110,000 MT as specified in the Contract.
The Contract signed is subject to normal business risks which include the state of the overall economy, world prices of petroleum products, fluctuation in exchange rates vis-à-vis Malaysian Ringgit against the US Dollars, changes in government regulations and other operational risks.
As such, PKG and AKSB would put in place appropriate control measures and operational procedures to reduce the impact or likelihood of such events.
Ancom, in a statement today (March 16), said the contract is not expected to have any effect on the share capital and substantial shareholders’ shareholdings of ANB Group. It is expected to contribute positively towards the future earnings and net assets per share of the ANB Group for the financial year ending 31 May 2023 and the financial years thereafter for the duration of the Contract.
In this context, none of the Directors or Major Shareholders of ANB or persons connected with them have any interests, whether directly or indirectly, in the said contract, it said.
