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KUALA LUMPUR: Oil and gas service provider Alam Maritim Resources Bhd
is tendering for domestic and foreign projects worth some RM2.6 billion.
Group managing director and group chief executive officer Datuk Azmi Ahmad said the group was looking for new opportunities in several countries including Thailand, Vietnam, Myanmar and Indonesia.
"We are currently in talks with Thailand for a few projects and hopefully to get at least one project valued at between RM20 million and RM30 million," he told reporters after the group's AGM in Kuala Lumpur on Friday.
The tender process was still ongoing and the group was still awaiting the results, he added.
Alam Maritim, which has a fleet of 44 vessels, has a success rate of 15%.
The company's orderbook stands at RM435 million, of which 70% are from the offshore support vessels (OSV) segment, while the other 30% are from offshore installation and construction and subsea services segments.
The orderbook will keep the group busy for the next two years.
"Amid the current oil prices, the tendering activities are still on the positive side and but they are not major contracts, while the Malaysian market is quiet for OSV tenders.
"The current oil prices do not directly affect us but the cut in the gas majors and national oil companies' capital expenditure (capex) and operating expenditure has reduced the demand for support services activities," he said.
For the first quarter ended March 31, 2016, Alam Maritim posted a pre-tax loss of RM18.84 million compared with a pre-tax profit of RM9.77 million a year earlier, while revenue dropped to RM48.65 million from RM73.70 million.
Azmi said with the strong business fundamental, the group expected its performance in the third quarter of 2016 to be better, driven by the anticipated improvement in global oil prices in the second half of the year.
"By reducing operational cost, maintain excellent performance and freezing capex, we believe the result will be better going forward," he said, adding that the group's current cash position stands at between RM50 million and RM100 million which can sustain it for the next six months. - Bernama
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