Enproserve Group Bhd managing director Azman Yusof. — AZLINA ABDULLAH/The Star
PETALING JAYA: Maintenance and turnaround specialist Enproserve Group Bhd
is preparing for major growth in 2026 and 2027, anchored by what could be the country’s largest plant turnaround at the Pengerang Integrated Petroleum Complex and the expansion into new revenue streams including mobile crane rental and facilities management.
Enproserve’s managing director Azman Yusof (pic) said the ACE Market-bound company is ramping up its machinery and fleet capacity in anticipation of the massive job, which he described as “the first turnaround (in Pengerang) which needs to happen latest by 2027”.
“There will be a lot of resources required, a lot of equipment required to stop the plant, to open up the equipment, to do the inspection, to repair if there is any damage and to restart the plant,” he told StarBiz during an interview.
Enproserve’s initial public offering (IPO) will involve a public issuance of 210 million new ordinary shares, expected to raise RM50.4mil, based on an IPO price of 24 sen.
In addition, Azman will undertake an offer for sale of 105 million existing shares, raising RM25.2mil and reducing his stake from 100% to 70% post-listing.
Of the RM50.4mil to be raised from the public issue, RM23.68mil or 47% will go towards capital expenditure including RM9.16mil for new machinery and equipment, RM9mil for lorries and a mobile crane, and RM5.5mil to set up a crane depot facility.
This is to better serve its ongoing and upcoming contracts without denting margins, and to reduce reliance on leasing.
“If you want to have a good margin, you need to have all the assets to carry out the works in the oil and gas industry,” said Azman.
Since 2019 to last year, Enproserve had completed 14 contracts.
Currently, it has 33 ongoing contracts, including six turnaround contracts running until 2029.
Most of these fall under their plant maintenance and turnaround segment.
There are also five engineering, procurement, construction and commissioning (EPCC) contracts, two facilities management contracts and seven crane contracts.
Enproserve’s contracts are predominantly under long-term master service agreements.
These unit-rate contracts provide recurring income, with revenue realised once specific jobs are called out and confirmed by clients.
Another RM11.65mil or 23% from the IPO proceeds is set aside for the repayment of bank borrowings, which is expected to reduce the group’s net gearing ratio from 1.07 times to 0.50 times.
The group has also earmarked RM10mill or 20% of the proceeds for working capital, while the remaining RM5.03mil or 10% will be used to cover listing expenses.
For the financial year ended Dec 31, 2024 (FY24), Enproserve reported revenue of RM198.41mil and a net profit of RM20.22mil.
The company recorded a three-year compound annual growth rate of 29.5% for its revenue over the last three financial years. Its plant maintenance and turnaround segment remained the main revenue contributor, generating RM164.95mil or 83% of total revenue.
Notably, revenue from its other related activities – including the rental of equipment and vehicles, and manpower supply – more than doubled to RM11.5mil in FY24 from RM4.08mil in FY23, and now make up almost 6% of the topline.
This was driven by seven long-term rental contracts secured from the Petroliam Nasional Bhd (PETRONAS) Group in September 2023 to supply mobile cranes, forklifts, lorries and other lifting equipment for daily plant operations and turnarounds.
The contracts span three years from 2023 to 2026, with an option to extend for another two years.
Since securing the contracts, the Enproserve group has expanded its fleet with the purchase of 21 mobile cranes, bringing its total to 24 units, at a cost of RM34.5mil.
Proceeds from the IPO will further support the expansion of its fleet and crane depot infrastructure to meet growing demand.
Enproserve also recorded RM10.98mil or 5.5%, from its EPCC segment, while its facilities management services contributed RM11.08mil or 5.6% of revenue. Enproserve’s top five customers contributed RM195.03mil, or 98.3% of its FY24 revenue.
The two largest contributors were Pengerang Refining and Petrochemical – a joint venture between PETRONAS and Saudi Aramco – and the broader PETRONAS Group, accounting for 47.6% and 43.9% respectively, mainly through plant maintenance, turnaround and related engineering services.
“We are currently dependent on PETRONAS. But being a local oil and gas player, we cannot really run away from PETRONAS. This listing is one platform for us to build our own brand,” Azman said.
Meanwhile, the Public Works Department contributed 4.1% of its FY24 revenue, linked to its facilities management contracts for government buildings.
Enproserve’s IPO application will close on July 8, with its tentative listing scheduled for July 18.
