KUCHING: Perdana Petroleum Bhd is eyeing for regional contracts to supply offshore support vessels (OSVs) for the oil and gas (O&G) industry in several countries.
The company is looking at prospective tenders from Dubai, Myanmar, Thailand and Vietnam that feature highly competitive and more stringent contract requirements, according to managing director Tengku Datuk Yusof Tengku Ahmad.
He said tendering activity for OSVs in Asia appears robust and competitive.
As at March 31,2021, he said the group had some RM131.8mil contracts in tender.
“The maximisation of vessel utilisation rates and broadening of the market portfolio through participation in regional tenders remain focal points for the group, ” he said in the company’s 2020 annual report.
Perdana group has some RM88mil in total outstanding contract value secured in the first quarter of its current financial year ending Dec 31,2021.
Tengku Yusof said efforts by the group to actively participate in various tender exercises in 2020 to replenish its order book and available market surveys were hindered as the contracts open for tender were either cancelled or deferred due to market uncertainty.
In light of this, he said the group’s operations focused on charter contracts secured from time to time.
The group owns and operates a fleet of 16 vessels, comprising eight anchor handling supply vessels (AHTS), six accommodation work barges (AWB) and two accommodation workboats – catering to greenfield and brownfield O&G activities in Malaysia.
Last year, the group’s AHTS vessels recorded the highest utilisation rate at 60% and contributed 37% to total group revenue while AWB followed closely at 52% and chipped in 35% in revenue contribution.
Tengku Yusof said the annual vessel utilisation rate fell to 53% after recording an uptrend in the past two years.
“The lower utilisation rate reflects the prevailing weak sentiment in the crowded Malaysian OSV segment as a result of slower work orders or contracts awarded from oil majors in the second half of 2020.
“Daily vessel charter rates had yet to recover from the 2015 plunge in charter rates and this weakness was felt in 2020, ” he added in a review of the group’s operations.
In 2021, Tengku Yusof said the group’s subsidiary Perdana Nautika Sdn Bhd was awarded a licence by Petroliam Nasional Bhd (Petronas) to provide marine vessel chartering services to the national oil company and its petroleum arrangement contracts.
“The group aspires to be the leading and preferred offshore marine operator for the upstream O&G industry in the region, ” he added.
Perdana plans to modernise its fleet of OSVs to phase out the older vessels as the fleet’s current average age is about 10 years old.
“The fluctuation of charter rates in 2021 could start to take a toll on older vessels that are more expensive to operate. In light of this, a fleet replacement programme for ageing vessels is anticipated to be launched for cost efficiency optimisation although the extent of this project will be subject to market developments and funding considerations.
“The fleet replacement programme is a component of the group’s business sustainability plan to bloster utilisation rates for its main business AHTS and AWB fleet categories. It will be part of the group’s strategy to drive operating cost efficiency in 2021, ” said Tengku Yusof.