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Icon Offshore targets 10% revenue increase this year

June 20, 2013

By KAMALAVACINI RAMANATHAN

KUALA LUMPUR: Icon Offshore Bhd, Malaysia’s third largest offshore support vessel (OSV) group, plans to register a 10% increase in revenue for this year from RM180 million a year ago, mainly due to its dynamic positioning of two diesel electric platform supply vessels (PSV).

Icon Offshore Bhd, Malaysia’s third largest offshore support vessel (OSV) group, plans to register a 10% increase in revenue for this year from RM180 million a year ago, mainly due to its dynamic positioning of two diesel electric platform supply vessels (PSV).

Icon Offshore CEO Dr Jamal Yusof said the vessel Tanjung Piai 1 was energy efficient and driven by a diesel engine. “We are the first Malaysian company to take delivery on this diesel electric PSV.

“This is the first one, the second vessel, known as Tanjung Piai 2 that will be delivered at Labuan shipyard sometime in November,” Dr Jamal told the press after the delivery of Icon’s first platform supply vessel at the Muhibbah Marine Engineering Sdn Bhd shipyard yesterday.

In 2012, the company made a net profit of RM64 million. The 8,600 brake horsepower MV Tanjung Piai 1 is a partnership with Muhibbah Marine Engineering, a subsidiary of Muhibbah Engineering (M) Bhd.

Dr Jamal said the 77m-long vessel can accommodate 60 crew members and was delivered on a 1+1 year contract worth RM90 million.

The acquisition of two diesel electric PSVs will expand Icon’s fleet to 35 vessels by end of this year.d

“Tanjung Piai 1 will serve the offshore oil and gas industry in Peninsular Malaysia, doing supply runs from the supply base to the oil platform besides serving far-away deepsea oil platforms in rough weather,” Dr Jamal said.

Besides Malaysia, Icon also expanded its services to Qatar and Vietnam.

“We are always consistently looking for overseas charters and we are actively tendering jobs in countries like Australia, India and of course our aim is be a player in the South-East Asia region,” he said.

Muhibbah Marine Engineering Sdn Bhd MD Mac Ngan Boon said the company was confident of a continued strong relationship moving forward.

Asked about Muhibbah’s status to become the lead contractor and shareholder in the Asian Petroleum Hub oil terminal in Johor, Mac said it was still a status quo.

“We are waiting for approval as at this juncture the bank still has to make a decision. It is still status quo,” he said.

Klang-based Muhibbah was appointed as the contractor for the terminal and piling works for the proposed storage and bunkering facility promoted by cash strapped Asia Petroleum Hub Sdn Bhd (APHSB), a company 90%-owned by KIC Oil and Gas Sdn Bhd and 10% by Trek Perintis Sdn Bhd. CIMB Bank Bhd is the creditor for the project.

The Malaysian Reserve had reported on February this year saying that APHSB’s stake in the project is set to be diluted to a minority stake, while CIMB will continue to provide the necessary funding for its completion be it on its own or by diversifying risk with other parties.

Muhibbah was awarded an RM820 million contract by APHSB and the company has undertaken some RM600 million worth of works and paid about RM300 million with the remaining outstanding. Further works have been suspended.

Muhibbah’s share price rose 18 sen to RM1.60 at the close of trade yesterday.

The construction and engineering company has an orderbook of about RM3.8 billion and a construction book of about RM2.5 billion that will last until 2014.

This content is proided by FMT content partner The Malaysian Reserve


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