LONDON (Jan 30): Marine transportation provider E.A. Technique (M) Bhd (EATech) is bullish on this year’s performance with an improvement of between 30% and 40% in its bottom line.

Revenue from projects secured last year is expected to transpire in the current financial year.  

Managing director Datuk Abdul Hak Md Amin said EATech secured combined contracts valued at more than RM500 million in 2019, including an Operation and Maintenance (O&M) contract from Petronas Carigali Sdn Bhd’s subsidiary Vestigo Petroleum Sdn Bhd, worth about RM20 million annually. 

“This contract will proceed in 2020/2021,” he told Bernama during a stopover in London, en route to Cyprus to meet leading tanker owners.

The company ended the last decade on a positive note, with its order book standing at RM1.3 billion.

According to Abdul Hak, EATech would continue to bid for more contracts in all its core sectors, namely downstream tanker business, port services and upstream offshore business this year, in anticipation of further explorations by oil majors, both in the upstream and downstream.

"For this month, EATech has delivered a Floating Storage Tanker or TST at Petronas Carigali’s Sepat C field off Terengganu. This RM120 million (including the option period) contract will give an additional steady revenue for us, particularly for this year and 2021.

"This is by far the most challenging project as it was a fast track project and had to be completed within five months. We had some technical difficulties amidst the monsoon season, coupled with typhoon Tisoy coming from the Philippines, which has affected the installation of the storage tanker and the riser," he said.

According to Abdul Hak, it is impossible to even lay the riser on the seabed during the extreme weather condition due to safety precaution, which had also affected the overall aspect including financially.

"However, with the close cooperation between Petronas Carigali’s team and EATech, the project was delivered successfully without Lost Time Injury," he said.

He also revealed that another emergency supply vessel (ESV) would be added to the fleet in March 2020 for charter by Petronas Floating Liquefied Natural Gas (PFLNG).

"This is another milestone for EATech, as this will be utilised for PFLNG2 that will be located at offshore Sabah. For the record, EATech currently has four vessels serving PFLNG1," he said.

Altogether, he said the three new additional contracts would add another RM80 million to the company’s existing revenue for the year 2020.

On the industry outlook, he said the current oil price of between US$60 to US$65 would see increase activities in the sector

"For us, it will be a busy year ahead, with three new product tankers to be delivered in early 2021. We are developing another long term arrangement with PT Pertamina (Indonesia) on the two tankers currently on short term contracts, and few others projects in the pipeline," he disclosed.

EATech is a shipping company listed on the main board of Bursa Malaysia.

Its wholly-owned subsidiary, Johor Shipyard and Engineering Sdn Bhd, is specialised in shipbuilding and repair works.

Started by Abdul Hak, his wife and his late brother, the company began as a small family business in 1995 and has since grown with a total fleet size amounting to 49 ships.

“We have been here for the last 25 years, weathering all kinds of storms and competition. With a proper expansion programme and importantly, succession planning for key management positions, we intend to stay for another 25 years and more,” he added.

Over the years, EATech’s fleet enjoyed an average of about 85% utilisation rate, which is above the industry standard, as 90% of the ships are on long-term charter.

The remaining 10% acted as substitute vessels, when the chartered ones go for drydocking or long maintenance.