News:Asia

MMHE aiming for $907m in new jobs this year

In further signs of optimism for the Malaysian oil and gas (O&G) industry, Malaysia Marine and Heavy Engineering Holdings (MMHE) has said it is aiming to secure some MYR4bn ($908.6m) in new contracts this year.

Local media cited group md and ceo Wan Mashitah Wan Abdullah Sani as saying that while MMHE's tender book currently stood at MYR2.7bn, it is also preparing to submit bids for another MYR1.7bn worth of jobs.

Although some of the projects it had earlier been targetting have been deferred due to the low price of crude oil, some strength is returning to the market with the company recently securing a MYR1bn contract for an offshore project in Sarawak.

The group’s order book currently stands at MYR1.01bn made up of the Bokor Phase 3 development project in offshore Sarawak, which involves the engineering, procurement, construction, installation and commissioning of the project’s central processing platform (CPP).

“The current orderbook, as well as the Bokor project, provides us some earnings visibility over at least the next three years. In the meantime, we are still pursuing projects to increase our backlog in the heavy engineering business,” Wan Mashitah was quoted as saying at the company's AGM.

“There are major projects on offer that we have bid for, but some were deferred due to the current uncertainty in the oil and gas (O&G) industry. Our main focus now is to diversify our revenue sources, which we have been doing for the past several years, as well as cost cutting and improving efficiency,” she said.

Posted 20 April 2017

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Vincent Wee

Hong Kong and SE Asia Correspondent, Seatrade Maritime News

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