Alam Maritim expects 30 pct from order book to be recognised this year

Alam Maritim expects 30 pct from order book to be recognised this year

SERI KEMBANGAN: Alam Maritim Resources Bhd expects 30 per cent of its RM990 million order book to be recognised in the group’s current financial year ending Dec 31, 2019, group managing director Datuk Azmi Ahmad said.

The order book comprises several contracts namely the RM500 million subsea services, RM250 million offshore installation and construction (OIC) and the remaining RM240 million offshore support vessels (OSV).

Speaking to reporters after the company’s annual general meeting today, he said these contracts would keep the company busy for between two and five years.

The nature of the contracts it secured he said, was a clear indication of the company’s shift in business focus from being a pure-play OSV provider to an integrated marine serviced provider by tapping on its expertise in OIC and subsea services.

“The group’s strategy is consistent with oil majors mid-term activity outlook, which indicates a huge opportunity for OIC and subsea expertise given that Malaysia has a large number of legacy offshore assets, some even exceeding 35 years of operations of which, many have reached their end of life phase.

“This means, decommissioning activities are set to increase in momentum and this presents opportunities for AMRB,” he said.

Meanwhile, the group continues to optimise its fleet of vessels, which currently stood at 39 and is planning to reduce nine vessels.

“To-date four vessels have been sold and we hope another five vessels to be disposed within this year.

“We are reducing the number of vessels and are focusing on certain vessels like platform support vessels and anchor handling tug supply vessels,” he Azmi.

For the past four years, AMRB has been a loss-making entity with a net loss in the first quarter ended March 31, 2019 (1Q19) stood at RM4.42 million compared with a net loss of RM11.37 million in the same period 2018.

Revenue in 1Q19 rose to RM27.61 million versus RM21.44 million previously.

“Even though AMRB still making a loss in the 1Q19, but the loss has reduced… We hope for the second quarter and beyond, we can see the improvement,” he said.