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

No comments:

Post a Comment