Dayang eyes to bid for contracts worth RM2 bln next year

KUALA LUMPUR: Oil and gas service provider, Dayang Enterprise Holdings Bhd, is eyeing to bid for four to eight contracts worth some RM2 billion next year, managing director Tengku Yusof Tengku Ahmad Shahruddin said yesterday.
He said the contracts consist of only local projects, as the company would not bid for overseas projects.

Tengku Yusof said currently the company has an order book totalling RM700 million which would last until 2012.

Todate, Dayang has completed contracts totalling RM1.2 billion, he told reporters after signing a conditional agreement to acquire a 40 per cent stake in Syarikat Borcos Shipping Sdn Bhd for RM132 million in cash here yesterday.

On the acquisition, Tengku Yusof said it would be financed via internally generated funds and bank borrowing.

He said the proposed acquisition would be tabled in an extraordinary general meeting, which is slated for early December, and the transaction is expected to be completed before year-end.

Upon approval, Borcos will be an associate company of Dayang, he said.

Tengku Yusof said Borcos, a privately held company, has a profitable track record and an order book of RM300 million todate.

Borcos is the country’s second largest provider of offshore support vessels and specialises in the provision of marine transportation and support services for offshore oil and gas industry.

Borcos currently owns and manages a fleet size of 33 marine vessels comprising various types of vessels such as fast crew boats, safety stand-by vessels, offshore support vessels, harbour tugs, utility vessels, pilot boats, landing crafts and general purpose vessels.

He said Borcos is expecting to deliver six more vessels — two fast utility vessels and four offshore support vessels — which will be delivered in phases between now till year-end.

In addition, Borcos is building two more offshore support vessels, with dynamic positioning features for deep-water work, which is expected to be delivered in 2011.

Tengku Yusof said through the acquisition, Dayang can participate in the growth of leading marine transportation and support service company which has substantial market share in the country.

He said the acquisition also provides Dayang opportunities to expand into other viable activities within the growing oil and gas support industry.

Asked whether Dayang has any plans to increase its fleet size, he said the company expects to increase to 15 vessels by 2015.

Currently Dayang operates marine chartering operations and owns five vessels – four workboats and one supply boat. — Bernama