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Tanjung Offshore expect higher profitability in 2010

Posted on: June 19, 2009

Bernama – Friday, June 19

KUALA LUMPUR, June 18 (Bernama) — Tanjung Offshore Bhd expects additional vessels to drive the company to higher profitability in the next financial year ending December 31, 2010, managing director Omar Khalid said today.

The additional vessels are expected to provide further penetration in niche markets in the oil and gas sector, which in turn will drive higher returns for the company, he said.

“With this new four vessels onboard, we hope by next year to be able to see the fruits of labour,” he told reporters after a signing ceremony between its wholly-owned subsidiary, Tanjung Kapal Services Sdn Bhd, and Standard Chartered Bank.

The four vessels are expected to be completed by year-end, he added.

For the first quarter ended March 31, the company made a pre-tax profit of RM11.405 million on revenue of RM186.869 million.

The agreement for the RM162 million Islamic financing facility is for the construction and commissioning of four new anchor handling tug and supply vessels.

It will complement the group’s existing fleet from 12 to 16 offshore support vessels, Omar said.

“We are optimistic that there will be continued robust demand, driven by the tight supply of Malaysian flagged vessels,” he said.

Demand in the offshore support vessel market in Malaysia is continuing to grow, driven by deepwater exploration and production activities.

The country currently has a total of 610,318 square kilometres of exploration acreage with over 70 production-sharing contracts in place, with the focus increasingly on exploration and production activities in East Malaysia.

Tanjung Offshore is a leading provider of integrated upstream and downstream services to the oil and gas sector, and its businesses include offshore support vessels, maintenance services, and drilling and platform services. — BERNAMA



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