Thursday, May 31, 2012

SapuraKencana: Bidding order book to hit RM12b by yr-end

See any Sabahan or Sarawakians in SapuraKencana shareholders?

SapuraKencana Petroleum Bhd, one of the world's largest full-fledged integrated oil and gas service providers, expects
to bid for RM12 billion worth of contracts by year-end, its President and Group Chief Executive Officer Datuk Seri Shahril Shamsuddin said today.

Currently, he said, the company was bidding for RM7 billion worth of jobs, of which 50 per cent are for local projects, while the remaining are in Australia and Brazil.

"Right now, we have about US$1.5 billion worth of businesses in Brazil, which is the base for us to enter West Africa. We are putting bids for the second round in Brazil," he told reporters after the launch of the company's prospectus and new corporate logo here.

Shahril said the bidding success rate was about 30 to 40 per cent. To maintain its operational sustainability, he said, the group needs to maintain an order book of about RM8 billion to RM12 billion a year.

Presently, the company's order book stands at about RM13.5 billion, which translated into backlog jobs that can make them busy for three-and-a-half years.

The merger entity is currently the world's fifth largest integrated oil and gas engineering, procurement, construction, installation and commissioning (EPCIC) services provider.

"There have been businesses already while we are merging, so I guess that's an illustration of how this merger has fit like a jigsaw puzzle and integration is not an issue because our people have been working together as EPCIC team," Shahril said.

Asked whether the merger and acquisition exercise will entail retrenchment, Shahril said that on contrary the company, which currently has 9,000 workforce under its wings, was still looking for more people to support the group in future.

He also said the company would continue to support and be a catalyst for local vendors development in the oil and gas industry in line with the country's aspirations.

"To date, we have dished out about RM1.5 billion to RM2 billion worth of works to small-and middle-sized companies. We are like mothership, supporting about 500 vendors and suppliers," he said.

On capital expenditure, Shahril said the group was spending US$1.5 billion over the next three years to finance the projects including drilling rigs and pipe-laying vessels.

Asked whether rising global oil prices would affect the group,
SapuraKencana's Executive Vice-Chairman Datuk Mokhzani Tun Dr Mahathir said the group started as two small companies and has faced many challenges to reach this stage.

"We know how to operate even on tighter margin, so I'm very confident that despite whatever happens in the market, we will be resilient and strong enough to pull through," he said.

The listing of the company on Bursa Malaysia's Main Market tomorrow will see the floatation of 5,004,366,196 shares at RM2 per share issue price.

As a result of the listing, the market capitalisation of Sapurakencana will be valued at slightly over RM10 billion. Also present at the event was Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop. -- Bernama

Friday, May 25, 2012

Kencana awarded RM 460 million contract offshore Sarawak.

Kencana Petroleum secures RM460m contract

KUALA LUMPUR: Kencana Petroleum Bhd has received a letter of award from Murphy Sarawak Oil Co., Ltd. for the fabrication of offshore topsides and the contract is valued between RM460mil and RM474mil.
It said on Tuesday Murphy Sarawak awarded the contract on April 20 for the provision of engineering, procurement, construction and commissioning (EPCC) of Serendah Production topsides facilities at the oil fields development off Bintulu, Sarawak.
"The value of the contract is estimated at between RM460mil and RM474mil. The contract is expected to be delivered from first quarter of calendar year 2013 to second quarter of calendar year 2013," it said.
Kencana expected the contract to contribute positively to the earnings and net assets per share of the group for the duration of the contract.

Sunday, May 20, 2012

Yu family-owned gets RM 1.7 billion contracts in Sarawak

Hock Seng Lee secures RM45.7m Sibu flood mitigation job

KUALA LUMPUR: Hock Seng Lee Bhd (HSL) has secured a RM45.7mil sub-contract for further flood mitigation works in Sibu.
The Sarawak-based company said on Wednesday this was the latest project after it secured a construction contract for a RM10.6mil orphanage complex and a RM16.9mil government office, both in Bintulu.
"Together with the RM82mil 20.2-km road project at Balingian to Jalan Persekutan announced in February 2012, newly secured jobs for 2012 are worth RM155mil," it said.
HSL said that it had procured about RM313mil new projects for 2011, so it is in line to surpass this for 2012.
"The new contracts bring the total value of projects in hand for HSL to RM1.7bil of which some RM1.0bil is outstanding," it said.

Sunday, May 13, 2012

Multi millions profitable Sibu Shipyards steal electricity

Three shipyards in Sibu found stealing electricity

Borneo Post  May 8, 2012, Tuesday

TELL-TALE SIGN: The meter compartment’s security seal.
KUCHING: Three shipyards in Sibu were caught tampering with their electricity meters by Sarawak Electricity Supply Corporation (Sesco) last month.
“All the three shipyards which were found to have tampered their meters are located at Jalan Rantau Panjang in Sibu,” said Sesco in a statement issued here yesterday.
It added that the meters installed by Sesco at these shipyards were equipped with tamper-detection features. It has the capability to detect and record any meter irregularities.
The statement said that Sesco would continue to purchase more advanced meters in their fight against electricity theft through meter tampering.
According to Sesco, in order to meddle with the meter wiring to steal electricity, the thieves have to cut off the security seals of the meter or seals at the cable compartment of the main switch board.
Any signs of security seals being cut, damaged or modified can be easily identified by Sesco’s meter inspection team.
In one of the meter-tampering cases discovered, the meter was found to have no security seals.
And in a case in Miri, a hardware factory was caught for forcing open one phase of the measurement circuit to prevent electricity consumption being registered by the meter. The security seals of the meter were also found to be cut.
Power theft losses in Sibu are still the highest in the state although the percentage of losses has shown great improvement since 2011.

THE TACTIC: The opened phase of the measurement circuit.
“In monetary terms, we lost about RM50 million through power theft annually in Sibu. This is about 50 per cent of the total amount recorded in the state.”
Miri is second on the list with RM24 million.
Sesco said it would continue to mount public awareness campaigns to educate the public that stealing electricity is an offence and that it could cause property loss and electrocution.
Theft of electricity is an offence under Section 33(5) of the Electricity Ordinance and is punishable with a fine of up to RM100,000 or imprisonment of five years or both.
Members of the public can alert Sesco about electricity theft by calling 082-443535 or write to: The Controller, Revenue Management Control Centre, Wisma Sesco, Jalan Bako, Petrajaya, 93673 Kuching, Sarawak.

Monday, May 7, 2012

Naim to get more land in Miri for Hospital business

KPJ, Naim Land ink hospital pact

Published: 2012/04/19

Kumpulan Perubatan (Johor) Sdn Bhd has signed a joint-venture agreement with Naim Land Sdn Bhd to own a purpose-built
hospital and later operate the hospital at Kuala Baram district in Miri.

Under the joint venture, Kumpulan Perubatan Johor, a wholly-owned subsidiary of KPJ Healthcare Bhd, will design, develop, build, complete and run the hospital.

Parent company, KPJ Healthcare, said Kumpulan Perubatan Johor, would operate through a joint-venture company, in which the latter would hold 70 per cent equity interest while Naim Land the remaining 30 per cent.

The joint venture was in line with the KPJ Healthcare and its subsidiaries' objectives to increase their hospital network to locations where private healthcare was in demand.

At the same time, it would leverage on KPJ's and Naim Land's capabilities to operate a private hospital and to lower KPJ's initial start-up costs, it said.

The joint-venture is expected to be fulfilled and completed by the first half of this year, said KPJ Healthcare in a statement today. -- Bernama

Tuesday, May 1, 2012

Rajang River Shipping Magnate Lau Nai Hoh switches production to China

TAS turns to China shipyardS


KUCHING: TAS Offshore Bhd has turned to established shipyards in China to build new vessels as its shipyard in Sibu could not cope with the many orders coming in.
Group managing director Datuk Lau Nai Hoh said the Sibu shipyard was now operating at full capacity, with more than 10 vessels of different types under construction.
He said one anchor-handling tug supply (AHTS) vessel was now being built in a shipyard in China, adding that the company was in the process of contracting out the construction of two more similar vessels to builders in that country.
“The three vessels would cost about US$38mil. One of the vessels is for a regular client from the Middle East for use in deepsea operation while the other two will be for sale,” he told StarBizWeek.
Each vessel will take between 18 and 20 months to build.
Lau said TAS would continue to outsource the construction of bigger vessels to shipyards in China as that country could build vessels at competitive rates, had proven quality workmanship and could deliver the vessels on time.
He said the cost of the AHTS vessel now under construction in China shipyard was about 3% lower than if built locally.
Lau said TAS had secured orders for five tugboats worth RM22.7mil last month and another one worth RM2.5mil this month from clients in Indonesia.
Demand for tugboats in Indonesia is spurred by the growth of mining activities.
Lau said the company had secured contracts worth a total of RM84.5mil for financial year ending May 31, 2012.
Its clients are mainly from the Middle East, Indonesia and Singapore.
He said the company was finalising a deal with a regular Middle East client to build two AHTS vessels for about US$32.5mil.
If the deal is sealed, one of the vessels will be constructed locally and the other in China.
“We are also negotiating with a local client to build another harbour tug. The client's previous order of a harbour tug will be delivered in the next few weeks,” he added.
Lau said due to inavailability of space, the company's Sibu shipyard could not be expanded to enable more vessels to be built at any one time.
The company may build another shipyard in other designated shipbuilding zones in Sarawak.
He said the Sibu shipyard had been upgraded and was expected to take delivery of one gantry crane soon to speed up work processes.