VASTALUX Energy Bhd (VEB), which is en route to a listing, plans to expand its oil and gas-related business in the Philippines, India and Myanmar as well as the Middle East and North African regions from next year.
Its executive director Azman Abd Ghafar said the company is looking at Qatar, Oman and Saudi Arabia in the Middle East and Libya in North Africa.
"We expect our international business to contribute significantly to revenue. It is still too early to see much impact since we just started our overseas business last year.
"Our aim is to become a preferred engineering company for oil and gas and petrochemicals in the region," he told Business Times in an interview.
VEB, incorporated in 1995, has been making inroads into Indonesia and Vietnam.
Its Indonesian subsidiary, PT Vastalux Energy, secured its first job in February this year to instal a gas pipeline for the Greater Jakarta Distribution main line.
In May, it secured another contract to procure steel products and pipes in Indonesia.
In Vietnam, Vastalux Sdn Bhd has entered into a 10-year contract with Swedish MacGregor Oy and Alpha Co Ltd for the fabrication of steel products, specifically hatch covers.
Azman said VEB and Alpha also plan to form a joint-venture company to undertake offshore and onshore oil and gas supporting services, including fabrication operations, hook-up and commissioning, topside maintenance and underwater structural inspection.
VEB hopes to list on the second board of Bursa Malaysia next month. Its prospectus will be launched today.
Its initial public offering (IPO) involves the issuance of 57.23 million new shares, an offer for sale of 26 million shares and a restricted offer of seven million shares.
Azman said the company expects to raise some RM52 million from the IPO, of which 20 per cent will be used for its acquisition of at least two vessels, 40 per cent to repay loans and the rest for working capital.
He said the oil and gas sector still offers great potential, adding that VEB's strong track record of continuous growth holds the promise of good returns for investors.
Azman noted that in terms of revenue, VEB is ranked ninth out of 20 players in Malaysia. It posted RM143.23 million revenue last year.
The company is bidding for contracts worth close to RM750 million in the country, Azman said.
"Of this, 15-20 per cent are onshore jobs and the rest offshore," he added.
VEB's secured order book stands at RM900 million. Forty per cent has been completed, while the balance will last the company until 2010.
Its main customers include Petronas Carigali Sdn Bhd, Murphy Sarawak Oil Co Ltd and Malaysian Refining Co Sdn Bhd.
VEB operates three fabrication yards in Kemaman, Terengganu; Bintulu, Sarawak; and Labuan.
"We are developing our fourth fabrication yard in Teluk Kalong, Terengganu. We are spending some RM6 million on the yard, which is expected to be completed by the middle of next year," Azman said.
