“The drop in oil price is a short-term issue. We don’t think it will affect production, likewise, the O&G operations. The demand for support services remains strong and other maintenance activities are still in active mode,” group managing director and chief executive officer Azmi Ahmad was quoted as saying.
Although the current lower crude prices due to faltering global demand has somewhat delayed the much-anticipated awarding of O&G support services, such as offshore support vessels (OSV) contracts, Alam Maritim is still building up its capacities to tap future opportunities.
Alam Maritim had previously expected some of its core business in OSV contracts to come in somewhere in the early part of the current quarter as it has bid for some MYR2bn ($614m) worth of contracts to beef up its MYR1.3bn orderbook.
However Azmi said Alam Maritim, which usually has a success rate of between 20% and 25%, was still awaiting the results of the tender process from the oil majors.
“Nevertheless, we have been building up our capacity and resources to tap the opportunities when they come,” he said.
“We foresee that the opportunities for the O&G upstream segment will be improved by the second quarter of next year,” said Azmi.
He added that the industry’s dynamics had changed towards having an integrated player’s services for most of the contracts. “The key challenge for us is to have an ample balance sheet to finance any opportunities that we will have,” he said.
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