KUALA LUMPUR: Handal Resources Bhd has secured a contract to repair and maintain 19 offshore cranes from Repsol Oil and Gas Malaysia Ltd.
The contract, estimated at between RM20mil and RM25mil, was for a primary period of three years from April 10, 2019, with a one-year extension option, Handal said in a statement today.
The actual value depends on Repsol’s maintenance and repair schedule as the contract award is on a "call-out” basis.
"The management views this contract as a milestone for Handal as we continue to build the group and solidify its position in the offshore crane segment,” said managing director Sunildeep Singh Dhaliwal said.
He added that the group’s internal turnaround plans were still ongoing.
"Nonetheless, we will continue to seek new contracts to optimise the group’s earnings,” he said.
Recent developments in its efforts to turnaround the company include the proposed acquisition of a 51% equity interest in Borneo Seaoffshore Engineering Sdn Bhd (BSOE) which comes with a profit guarantee of RM5mil for the financial year ending June 30, 2020.
The acquisition comes with an outstanding orderbook of RM215.4mil which will significantly increase Handal’s outstanding orderbook size by 3.9 times.
The SeaOffshore Group of Companies, a rapidly growing O&G service provider, is presently a substantial shareholder of Handal and BSOE, with a 16.3% equity stake in Handal via Borneo SeaOffshore Sdn Bhd and Seaoffshore Capital Sdn Bhd.