SERI KEMBANGAN: Alam Maritim Resources Bhd expects a higher revenue this year after the integration of its offshore support vessel (OSV) and offshore installation and construction (OIC) operations.
Chief executive officer Azmi Ahmad said the company’s competitive edge was its ability to provide integrated services so that clients were able to minimise their logistic costs.
“The result of the first quarter this year (shows that the company) is in the black. We hope to have that momentum until the end of the year. We should be able to record a pretty handsome profit.
“With the development of our OIC unit, we are able to increase the utilisation rate of our assets. We expect our vessel utilisation rate to be 89% this year,” he said after Alam Maritim AGM.
Chairman Datuk Ahmad Sufian said the company’s OSV sector had an orderbook of RM700mil, which would last for two to three years, and a long-term charter contract for two vessels lasting 14 years.
Its OIC business, which the company expects to grow rapidly in the second half of 2012, has an orderbook of RM250mil.
However, Ahmad declined to reveal its targeted revenue as this would hinge on competition and the global economic outlook. “It will be better than 2011. That is all I can tell you,” he said.
He said company would bid for projects worth RM16.5mil related to the North Malay Basin. It will involve the construction of 300km pipelines.
“We are a fully integrated company now with the OIC services that we offer. We hope to ride on the North Malay Basin project to increase our revenue,” he added.
Ahmad also said that the prevailing low crude oil prices had no direct impact on the company’s performance as it was mainly involved in upstream activities.
“For example, at this kind of oil price, they are still moving ahead with projects like that (North Malay Basin). So obviously, the viability is there,” he said.
Crude oil has fallen 23.5% so far this year to US$78.68 per barrel as at 7pm yesterday. Slower oil demand is caused by weak economic data from China, the United States and Europe.
Alam Maritim turned around for the financial year ended Dec 31, 2011 (FY11), recording a net profit of RM13.2mil from a net loss of almost RM13mil in 2010.
Revenue for FY11 increased by 27.2% to RM308.1mil against RM242.92mil in the preceding year.