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Tanjung Offshore sitting out downturn, ready to get back on track

Tanjung Offshore sitting out downturn, ready to get back on track
Management at Tanjung Offshore can now focus on getting back on track with its core oil and gas (O&G) business and is in a good position to weather the current soft market as it had sold off its offshore supply vessel (OSV) business in a restructuring exercise three years ago and reduced headcount by 70%, local reports quoted group ceo Rahmandin Shamsudin as saying.

The temporary distraction to management caused by the boardroom tussle earlier and which resulted in a MYR1.97m ($528,546) net loss in the first quarter has nothing to do with the fundamentals of the company and it is expected to return to the black in the third quarter.

“The three major shareholders are friendly parties wanting to take the company forward. We have cash with zero-gearing,” Rahmandin said.

Meanwhile. the company is considering all opportunities including a return to the OSV sector if it is commercially viable as it will be able to do contractually. In July, a non-compete clause made in the deal when it sold its OSV business to Ekuit Nasional, that prohibits Tanjung Offshore from re-entering the sector, will expire.

Other areas Tanjung Offshore is exploring are brownfield development and engineering, procurement and construction or EPC jobs.

“We are bidding for some MYR750m O&G projects locally and abroad, namely in services involving drilling, engineering equipment and gas generation to add our order book,” Rahmandin said.The company has also not ruled out any merger and acquisition as valuations are now attractive with the oil price decline, but any potential merger partner, would need to be one who could bring in new technologies and know-how, said Rahmandin.

TAGS: Malaysia