E.A. Technique (M) Bhd (EATech), a Main Market-listed marine transportation and offshore storage outfit, has secured three contract extensions with PETRONAS’ Floating LNG 1 (L) Ltd (PFLNG1) through its wholly-owned subsidiary Libra Perfex Precision Sdn Bhd.
Valued at a total of RM63.9 mil, the contract extensions reinforce EATech’s proven operational capability and its trusted relationship with Malaysia’s national oil corporation.
For the record, EATech secured a RM41.0 mil contract extension for the provision of tugboat services in September followed by two additional contract extensions for emergency stand-by vessel (ESV) services for PFLNG1 (awarded in October) valued at RM22.9 mil.
These three contracts – each with a two-year term – commencing in November 2024 will leverage EATech’s existing fleet, thus further solidifying the group’s revenue streams while highlighting its trusted operational capabilities and enduring partnership with PETRONAS.
Very broadly, these contracts underline the recurring nature of EATech’s income streams which spells a key component of its sustainable growth strategy.
These mid-term commitments provide revenue visibility over the next two years. EATech will deploy its existing vessels to fulfil these contracts – a strategy deployed to maximise asset utilisation while showcasing its commitment to cost-efficient operations.
“EATech remains committed to delivering excellence in reliable marine services, meeting the operational needs of our clients with precision and efficiency,” commented EATech’s executive director Datuk Wira Mubarak Hussain Akhtar Husin.
“These contracts which are part of our on-going portfolio demonstrate the value of recurring projects in contributing to a stable revenue base and ensuring operational continuity. We are excited about the group’s continued growth with our dedication to progress and innovation reflected in these achievements.”
To date, EATech’s firm order book stands at RM169.5 mil, complemented by optional contracts valued at RM217.2 mil.
“This robust pipeline provides solid revenue visibility for the coming years, underpinning the group’s financial resilience and ability to deliver sustained value to its stakeholders,” added Mubarak.
At 3.28pm, EATech was unchanged at 30 sen with 6.48 million shares traded, thus valuing the company at RM398 mil.
