This is written by my boss Francis Fernandez.
KUALA LUMPUR: Green Ocean Corp Bhd is poised to post a record profit of between RM15 million and RM20 million in the financial year ending 31 March 2013.
The loss-making company is expected to register its first profit in four years for the financial year ending 31 March 2012.
“We should make a profit in the range of RM2.5 million,” said its group managing director Lee Byoung Jin in an interview with Business Times.
Lee, a South Korean national, and parties aligned to him control about 28 per cent of the company.
Green Ocean is banking on the Novelin technology to get back to the road of profitability. The technology was developed by the Malaysian Palm Oil Board (MPOB), and Green Ocean pays the board a royalty for a 20-year exclusive use of the technology.
The technology, known as Novelin, allows Green Ocean to produce cooking oil which has cold stability at zero degree Celcius, which means it can be used during the cold winter period.
Palm-based products tend to solidify at about 24.1 degree Celcius, which means palm oil-based cooking oil can’t be used during winter.
The Novelin technology, which has been trademarked by the MPOB, is a game changer in the global cooking equation as it removes palm oil’s Achilles’ heel in cold weather. If proven to be commercially successful on a large scale, it is also a significant cash cow for Green Ocean, which has already commercially tested its products in the South Korean market.
Green Ocean has never posted a double-digit profit, and Lee, who took the company over some three years ago, has been busy cleaning up the company’s balance sheet.
Today, the company has about RM9.70 million debts and about RM34.78 million assets, and Lee is excited about the future.
“We are expecting to get a grant of about RM24 million from the government’s Performance Management and Delivery Unit (Pemandu) sometime in March to build a new factory. The new factory will help us increase our production capacity by as much as 10 times. Our current production facility has a capacity to produce 11,000 tonnes of cooking oil, but with the new plant, our capacity will increase to 100,000 tonnes," Lee said.
Green Ocean currently has a pilot plant near Port Klang, and the new plant, which will take about nine months to complete, will be located in the same area.
He added that Pemandu is involved because the project undertaken by Green Ocean is part of the government's Economic Transformation Programme.
Lee proudly pointed out that his company is 100 per cent export-based, namely to South Korea and China, and that Green Ocean is the only company in Malaysia with the exclusive Novelin technology. "We are the first and only company doing this right now," said Lee.
Green Ocean: It's merely a target
KUALA LUMPUR: Green Ocean Corp Bhd has clarified that its RM15 million to RM20 million profit statement is merely a target set by the management for the financial year ending March 31 2014.
This is provided the signing of an agreement to supply the entire premium cooking oil production to a conglomerate will materialise by fourth quarter of financial year ending March 31 2012 and the expansion to proceed as planned, Green Ocean said.
It was responding to Bursa Malaysia's query yesterday on certain statement's published in the Business Times article entitled "Green Ocean Banks On New Technology For Profit" yesterday.
The company also said that the management was targeting its first profit in four years for the year ending March 31 2013 and not 2012 as reported. It also clarified that it is actually applying to get a grant from Pemandu in March 2012 and not an approval for the grant as reported.