Main board candidate OilCorp bidding for RM300mil contracts


OIL and gas support specialist OilCorp Bhd, which will be listed on the KLSE main board early next month in place of Abrar Corp Bhd, has an order book of over RM100mil and is currently bidding over RM300mil worth of contracts. 

Its managing director Sunny Ng Huat Tian said about a third of the bids would come from oil and gas projects in neighbouring countries like Indonesia, Singapore and Vietnam and the remaining from on-shore oil and gas projects in Malaysia.  

Sunny Ng Huat Tian

“We are confident of securing some overseas projects in Brunei,” he told reporters after the launch of the company's prospectus in Kuala Lumpur, yesterday. 

Through 2 subsidiaries, Oil Line Engineering and Associates Sdn Bhd, OilCorp is principally involved in the oil and gas support industry. 

The company also planned to diversify into the offshore engineering fabrication sector of the oil and gas industry with the construction of a 22ha one-stop integrated fabrication yard in Pulau Indah, Selangor, he said.  

Ng said the completion of the RM40mil yard later this year would enable the group to tap offshore engineering projects, which were considered more lucrative than on-shore works, as offshore contracts could range from RM30mil to over RM200mil each. 

Ng expected the contributions from offshore activities to outweigh on-shore projects once the company's fabrication yard was fully operational by the 1st quarter of next year.  

“We believe OilCorp's growth in 2004 and 2005 will be quite substantial when our yard is ready,'' he said. 

With the offshore venture, OilCorp also aimed to secure projects from other oil companies other than Petroliam Nasional Bhd, from which it currently derives half its businesses.  

OilCorp chairman Datuk Seri Abu Hassan Omar said the future prospects looked good for the company. 

“We will continue to step up our marketing efforts for the international and regional markets by working together with multinational companies such as in widening the business network in various countries of interest,'' he said. 

In conjunction with the reverse takeover of Abrar and its listing exercise, OilCorp is offering up to 44.16 million of its shares of RM1 each to its eligible employees and directors, Abrar shareholders, and other investors through a private placement exercise, all at an offer price of RM1.10 each. 

Of the total shares, 8.76 million would be allocated to OilCorp directors and staff, 1.8 million to Abrar shareholders and 33.69 million for private placement. 

Apart from oil and gas, OilCorp is also involved in property development and resort operation through its subsidiary Ascentland Sdn Bhd, which is developing a 9.2ha mixed township known as PD Tiara Bay Resort in Port Dickson, Negri Sembilan. 

As for its financial performance, Ng said for the year ending Dec 31, 2003, the company forecast a profit after tax of RM14mil on turnover of RM120mil, against a RM7.8mil profit and sales of RM79.5mil last year. 

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