Eversendai tenders for RM12b O&G jobs
Company has also submitted tenders for structural steel works worth RM10b
EVERSENDAI Corp Bhd has tendered for oil and gas (O&G) projects worth RM12 billion worldwide, expecting to secure up to 10 per cent of the jobs in the next two to three years.
Eversendai executive chairman and group managing director Tan Sri A.K. Nathan said it had also submitted tenders for structural steel works to the tune of RM10 billion.
It expected a 10 to 15 per cent success rate over two to three years, he added.
“Despite the current market sentiment, we are very confident to secure the contracts based on our track record and expertise. We will continue to replenish the tender book,” said A.K. Nathan after launching the sea trials for Aryan, the group’s first self-propelled liftboat built for Singapore-based O&G firm Vahana Offshore (S) Pte Ltd, here, on Wednesday.
He said Eversendai was looking at new markets like the United States, the United Kingdom, Europe, Canada, Africa and Australia for expansion.
“I had a foresight to expand into these markets five years ago. It may take two or three years before we secure O&G jobs and construction and steel structure contracts in those countries. We are still planting the seeds.
“The focus for now will be the Southeast Asian region, the Middle East and India, where we have more than RM3 billion worth of ongoing projects. Moving forward, our aim is to reduce the overall operation cost so we can improve our net profit margin,” said A.K. Nathan, adding that the target was to make profit every quarter.
He said the gross margin now for most of its projects was about 12 to 13 per cent.
“There are challenges. We have to balance the business according to current market conditions. We will not submit anything where the gross margin is below 10 per cent. For high complexity projects, we will put the margin at 30 to 40 per cent and we have won a few jobs,” said A.K. Nathan.
For the year ended December 31 last year, Eversendai reported a net profit of RM86.51 million, reversing a net loss of RM278.88 million a year ago. Revenue was 15.67 per cent higher to RM1.83 billion, from RM1.58 billion.
Vahana Offshore awarded contracts worth RM580 million in 2014 to Eversendai’s whollyowned subsidiary, Eversendai Offshore RMC FZE in the United Arab Emirates, to build two vessels, Aryan and Arjun, at the group’s fabrication yard, here.
“Now that we have finished building Aryan, the next target is to complete Arjun next year. Our fabrication yard in Ras Al Khaimah can cater to different needs and requirement in the O&G sector. We plan to fabricate and load out heavy structures such as offshore jackets, platforms and process modules to overseas countries,” he said.
Meanwhile, Eversendai Offshore chief executive officer Narish Nathan said the company hoped to secure more jobs from Saudi Aramco.
It was reported that Saudi Aramco was projected to invest more than US$300 billion (RM1.17 trillion) over the next 10 years.
Last year, Aramco awarded a major offshore fabrication project to Eversendai Offshore to construct 10 jackets, the first of which would be delivered starting next month.
Eversendai Offshore received the project through Saipem S.p.A., which is one of the longterm agreement engineering procurement and construction contractors for Aramco.
“We went full fledged in the O&G business three years ago. Despite the market challenges, we were able to position ourselves, expand, develop and grow the business. Oil price has stabilised. Jobs are coming up in the market.
“There are national oil companies like Aramco, Kuwait and Abu Dhabi National Oil Company who have big plans for the industry. So the future is bright for Eversendai Group,” said Narish Nathan.