LONDON: Marine transportation provider E.A.Technique (M) Bhd (EATech) is bullish on this year’s performance with an improvement of 30%-40% in its bottom line with revenue from projects secured last year expected to transpire in the current financial year.
Managing director Datuk Abdul Hak Md Amin said EATech secured combined contracts valued at more than RM500 mil in 2019, including an Operation and Maintenance (O&M) contract from Petronas Carigali Sdn Bhd’s subsidiary Vestigo Petroleum Sdn Bhd worth about RM20 mil annually.
“This contract will proceed in 2020/2021,” he said during a stopover in London en route to Cyprus to meet leading tanker owners.
The company ended the last decade on a positive note with its order book at RM1.3 bil.
According to Abdul Hak, EATech would continue to bid for more contracts in all its core sectors – downstream tanker business, port services and upstream offshore business – this year in anticipation of further explorations by oil majors, both upstream and downstream.
“For this month, EATech has delivered a Floating Storage Tanker or TST at Petronas Carigali’s Sepat C field off Terengganu. This RM120 mil contract (including the option period) will give an additional steady revenue for us, particularly for this year and 2021.
“This is by far the most challenging project as it was a fast track project and had to be completed within five months. We had some technical difficulties during the monsoon season coupled with typhoon Tisoy coming from the Philippines which affected the installation of the storage tanker and the riser,” he said.
According to Abdul Hak, it was impossible to even lay the riser on the seabed during the extreme weather condition due to safety reasons, which had also affected the overall aspect including financially.
“However, with the close cooperation between Petronas Carigali’s team and EATech, the project was delivered successfully without Lost Time Injury,” he said.
He also revealed that another emergency supply vessel (ESV) would be added to the fleet in March 2020 for charter by Petronas Floating Liquefied Natural Gas (PFLNG).
“This is another milestone for EATech, as this will be utilised for PFLNG2 that will be located offshore Sabah. For the record, EATech currently has four vessels serving PFLNG1,” he added.
Altogether, he said, the three new additional contracts would add another RM80 mil to the company’s existing revenue for 2020.
On the industry outlook, he said the current oil price of between US$60 to US$65 a barrel would see increased activities in the sector
“For us, it will be a busy year ahead, with three new product tankers to be delivered in early 2021, and we are developing another long-term arrangement with PT Pertamina (Indonesia) on the two tankers currently on short term contracts and there are a few other projects in the pipeline,” he disclosed.
EATech is a shipping company listed on the main board of Bursa Malaysia. Its wholly-owned subsidiary, Johor Shipyard and Engineering Sdn Bhd, is specialised in shipbuilding and repair works.
Started by Abdul Hak, his wife and his late brother, the company began as a small family business in 1995 and has since grown with a total fleet size of 49 ships.
“We have been here for the last 25 years weathering all kinds of storm and competition. With a proper expansion programme and importantly, succession planning for key management positions, we intend to stay for another 25 years and more,” he added.
Over the years, EATech’s fleet enjoyed an average of about 85% utilisation rate which is above the industry standard as 90% of the ships are on long-term charter.
The remaining 10% acted as substitute vessels when the chartered ones went for dry docking or long maintenance. – Jan 30, 2020, Bernama
