Wednesday, 19 March 2014

Barakah eyes RM3bil in projects

Barakah Offshore Petroleum Bhd, an offshore pipeline service provider, is in the midst of bidding for contracts worth RM3bil.

Its Deputy Executive Chairman, Nik Hamdan Daud, said the company was bidding for long- and short-term contracts in Saudi Arabia, Indonesia, Brunei, Vietnam as well as at home.

"For the Saudia Arabia contract, the company is in the process of re-tendering it and the result will be out next month," he told a media briefing after the company's annual general meeting on Wednesday.

It was reported in January this year Barakah was one of three bidders for a Saudi Arabia transportation and installation job.

The job would be a major boost to sentiment, earnings and franchise value of Barakah, potentially adding RM50mil to RM70mil per annum to its net profit, said the report.

Nik Hamdan said the overall projects tendered came mainly from one of its core businesses, transportation and installation.

On expansion plan, Nik Hamdan said the company would diversify into engineering, procurement, construction, installation and commissioning sectors.

"There are a lot of opportunities locally due to huge demand in the market and we are working together with international companies that have assets here.

"We would focus on the local projects and slowly expanding our business overseas," he said.

He said the company would try to understand the local culture, tax implications, market potential as well as its own capabilities before venturing overseas.

Nik Hamdan said the company's total order book as at Dec 31, 2013 stood at RM2.24bil, which would keep it busy for at least five years.

Meanwhile, president Syed Abdul Rahim Syed Jaafar, said the group has targeted a double-digit growth in revenue for financial year ending Dec 31, 2014.

"Most of our group's revenue is derived from Malaysia but we are also looking for opportunities in the region for future growth," he said.

As at Sept 30, 2013, Barakah posted a pre-tax profit of RM57.62mil on the back of RM298.90mil in revenue. - Bernama