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EA Technique sees more contracts ahead

EA Technique sees more contracts ahead
Malaysia's EA Technique expects to secure up to 70% of two shipping services contracts worth MYR1bn ($279.6m) from a major client this year, local reports said.

Vice chairman Hak Md Amin was quoted as saying that the company has allocated $40m in capital expenditure this year to prepare for these contracts.

“Upon completion of securing the contracts, we expect to get an additional total revenue of MYR100m year-on-year. Our current projects in hand are worth MYR1.3bn,” he said.

Hak was sanguine on the industry outlook, maintaining earlier forecasts despite the uncertainty in oil prices and weaker local currency. “We are providing shipping services so we are isolated against any ups and downs in the oil prices. For 2015, we hope to get good [financial] results because our new vessel is coming into operation, hopefully higher than previous years,” he said.

In fact Hak noted that the company would benefit from the current situation as low prices should mean more bunker fuel will be shipped.