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Alam Maritim to spend RM300m on expansion

Posted on 03.03.2008 - 13:28 EST in ROV NEWS by Rons_ROV_Links

Alam Maritim to spend RM300m on expansionAlam Maritim Resources Bhd expects to spend about RM300mil in capital expenditure (capex) this year to buy new vessels and equipment. Managing director Azmi Ahmad said the amount was mainly for the purchase of new vessels.

"We are expecting delivery of 11 new vessels this year and two in 2010," he said after launching and naming its remotely operated vehicle (ROV) PARI 1 yesterday.

The 11 vessels, worth a total RM450mil, are expected to be financed by internally-generated funds and sale-and-leaseback arrangements with external parties.

"We are currently talking to a few banks to help finance our purchase. We are not discounting the possibility of setting up a joint venture," Azmi said.

With the new vessels, Alam Maritim expects to operate 32 vessels by end-2008 and 34 by 2010.

Datuk Capt Ahmad Sufian Abdul Rashid (left) and Azmi Ahmad at the launching and naming of the remotely operated vehicle, PARI 1Azmi said the group was currently expanding its marine fleet size and upgrading its equipment so that the group could deliver more jobs in future.

The company hoped to perform better in the financial year ending Dec 31, 2008, he said, adding: "We do expect some increase in revenue and net profit this year, possibly 20% to 30% growth driven by the delivery of new vessels."

On the price of oil that surpassed US$100 per barrel on Tuesday, Azmi said the uptrend might put global oil majors on the fast track in terms of exploration and extraction.

"The increased activities by oil majors will create an upsurge in demand for oil and gas support services," he added.

Chairman Datuk Capt Ahmad Sufian Abdul Rashid said the group was currently bidding for contracts from oil majors valued at about RM1.3bil, both locally and overseas.

To a question, he said the group could not quantify its success rate of getting contracts but hoped to receive a fair share of the cake.

Although the group had been looking for a partner, Ahmad Sufian said nothing was firm yet and it had yet to receive any offer.

Meanwhile, Alam Maritim has spent about RM20mil on the development of PARI. The group will be receiving PARI 2 in six weeks.

"We are currently working on the design of another ROV, the Swift 3000 MSW. The first unit of Swift 3000 is expected to be ready by year-end," Ahmad Sufian said, adding that the cost had not been finalised as it was still at the design stage.

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