T7 Global eyes double-digit revenue on Honeywell agreement

By NG MiN ShEN

T7 Global Bhd, formerly known as Tanjung Offshore Bhd, has signed a distributor-ship agreement with Honeywell International Sdn Bhd through its business unit, UOP Asia (UOPA), to be the Malaysian distributor of UOPA products.

The two-year agreement was inked via T7 Global’s subsidiary, Wenmax Sdn Bhd, which is a 51%-owned subsidiary of T7 Global’s fully owned unit, Gas Generators (M) Sdn Bhd (GasTec).

The partnership deal will see Wenmax distributing UOPA products in three busi- ness lines namely catalyst, adsorbent and specialties; gas processing and hydrogen; and processes, technology and equipment.

T7 Global executive chairman Datuk Seri Dr Nik Norzrul Thani N Hassan Thani said the group is “quite bullish” on GasTec’s future prospects as the UOPA products are unique and utilise cutting-edge technology.

“We expect double-digit revenue growth for GasTec with this agreement. We think the pro- ducts will hit the market well and hopefully the industry can appreciate the advantages of these products,” he told reporters at the signing ceremony in Kuala Lumpur yesterday.

He added that GasTec had been recording strong performance and was a major contributor to group revenue over the past few years.

The company will be promoting the UOPA products to Honeywell’s existing customer base in the country, as well as to other industries outside that of the oil and gas (O&G) sector.

“You will see UOPA products in downstream refineries and we are trying to get them into the offshore scene as well as targeting other industries like chemicals and power generation,” Nik Norzrul Thani said.

Going forward, the O&G company will maintain its core business, while diversifying into other areas, mainly the aerospace sector.

“As the O&G market is bearish, we need to diversify into other areas, though O&G remains our core business. We foresee the O&G industry will continue to be sustainable for the time being,” Nik Norzrul Thani said.

He said the group’s current orderbook stands at RM500 million, while its tenderbook was over RM1 billion.

“Our outlook is quite positive based on the work we’ve done so far. We have projects that are still sustaining us from last year. Meanwhile, we hope to begin recognising revenue from our aerospace business in one and a half year’s time,” he added.

The company ventured into the aerospace industry last year with the signing of a memorandum of understanding with Kilgour Metal Treatments Ltd to look into building and operating a metal treatment plant for the domestic aerospace sector.

For the first-quarter ended March 31, 2017, the company posted a net profit of RM258,000 compared to a net loss of RM4.69 million a year ago. It expects to return to the black in 2017 on better earnings from its O&G segment.