KUALA LUMPUR: Oil and gas (O&G) services provider SapuraKencana Petroleum Bhd is targeting to secure RM10 billion worth of order book this year to ensure its visibility in the next three to four years.
SapuraKencana has bagged several contracts worth a combined RM4.9 billion so far this year for
both domestic and international waters.
Its president and group chief executive officer Tan Sri Shahril Shamsuddin said the target will help the company sustain its order book at the current level of RM27 billion in the long term.
“Our current order book right
now stands at RM27 billion plus RM19 billion worth of optional
contracts extension. We will continue to explore new markets to bid
for more contracts,” he said after SapuraKencana’s annual and extraordinary general meetings, here, yesterday.
The company is bullish on its outlook based on its potential to tap the vast opportunities in the O&G services sector in new and existing markets, including the Americas, West Africa, the Middle East and Southeast Asia.
Shahril said these markets offer job opportunities worth US$200 billion (RM644 billion), US$70 billion, US$40 billion and US$38 billion, respectively, based on their total capital expenditure.
“The outlook is going to be in line with what we plan ... we have the opportunities to open some new markets. In fact, we’ve already got some new jobs for our new builds of DP3 pipelay vessels, which are working in areas we didn’t work before like in China.
“Challenges will always be competition. I think we are in a period where activities are low ... we’ve been very fortunate because our development of assets have been able to still get work in this slow period,” he said.
Shahril said the company is running on an average of 85 per cent asset utilisation and that this will firm up as activities in the coming years.
For the year ended January 31 2014, SapuraKencana recorded higher-than-expected earnings of RM1.09 billion on revenue of RM8.37 billion.
Its net profit in the fourth quarter surged 172 per cent to RM337.2
million, boosted by its drilling and energy services division that included the financial results of the tender rig business subsequent to completion of acquisition on April 30 last year.
Its revenue, however, was slightly lower at RM1.88 billion against RM1.95 billion in the same period a year ago.