The firm has tendered for projects in Africa, the Mideast and Europe — with over 10% winning chances
By P PREM KUMAR
Eversendai Corp Bhd, one of the country’s leading structural steel fabricators, is bidding for projects worth RM12 billion, mainly in the oil and gas (O&G) industry worldwide.
Eversendai executive chairman and group MD Tan Sri AK Nathan said the company has tendered for O&G projects in Africa, the Middle East and Europe — with winning chances of over 10%.
He said the projects will be undertaken by Eversendai Offshore RMC FZE — the Dubai-based O&G arm of Eversendai.
“We have tendered RM12 billion worth of O&G jobs and we will continue to maintain the number. Our chances of winning has been between 5%-10%, but now with a three- year track record, the chances are definitely higher,” he told the Malaysian media after the sea trial of Eversendai Offshore’s self-propelled jack-up barge, Vahana Aryan (picture), in Ras Al Khaimah, United Arab Emirates (UAE).
Vahana Aryan, one of the two liftboats awarded to Eversendai Offshore, is being built at Eversendai’s fabrication yard in RAK Maritime City in the UAE.
For the full financial year ended Dec 31, 2017, Eversendai reported a net profit of RM86.51 million, versus a net loss of RM278.88 million that was reported a year ago.
Its revenue was also 15.67% higher at RM1.83 billion, from the RM1.58 billion reported in the previous year. Currently, the O&G business contributed to 15.4% of the group’s revenue.
Eversendai Offshore CEO Narish Nathan said the firm, which was only established three years ago, has pre-qualified to secure projects from Saudi Arabian Oil Co (Saudi Aramco).
He said Saudi Aramco alone is expected to dish out O&G projects that would involve some 100,000 metric tonnes of steel, in the next two to three years.
“We have not taken into account the other major players in the Middle East,” he added.
Narish said Eversendai Offshore has also tendered for projects in Mozambique, Iran and Qatar, apart from the larger Middle East and European regions.
“With a waterfront facility in Ras Al Khaimah, we can actually serve the world,” he said, adding that the facility currently runs at 55%-60% of utilisation rate and powered by 1,500 employees.
“With that utilisation rate, it shows that we can actually take more projects,” Narish said.
Eversendai Offshore’s current clients include Petroliam Nasional Bhd and Saudi Aramco, which are served via the 30-acre (12.14ha) Ras Al Khaimah facility.
On Vahana Aryan, Nathan said it will be the first Malaysian-built and -owned liftboat.
NVahana Holdings Sdn Bhd, Nathan’s private vehicle which is also the majority shareholder of Eversendai Corp, is the owner and operator of the self-propelled liftboat.
Eversendai Offshore embarked on the project with in-house engineering in 2014 and started the actual construction in mid-2016, after several delays.
The total construction cost was US$102 million (RM398.82 million), some US$12 million more than the initially estimated US$90 million.
Nathan said the second jack-up liftboat is expected to be completed for sea trial next year, after Vahana Aryan secures a charter contract.
“After the first vessel is chartered, the bankers will have more confidence in funding the construction,” he said, adding that the construction is currently placed on hold at 30% progress.
Nathan said Vahana Aryan had to pay for variations due to several changes in specifications to suit market needs.
He said Vahana Aryan had started receiving enquiries from potential clients, and the company is expected to seal a charter contract in the next two to three months.
“Charter rates are getting better in the region and we are looking at short-term charter contracts of between six and 12 months.
“Rates are depending on supply and demand. In the Middle East region, we have seen supply shrinking, while demand
picking up,” Nathan said. Narish said Vahana Aryan has incorporated the best-in- class equipment with a 200- men accommodation capacity combined with a large deck space and lattice type legs that are more transparent to the wave action, and it is equipped with Dynamic Positioning System 2.
The 300-tonne crane with a 45m boom length gives a load handling capability to service the wellhead platforms.
Unlike floating vessels, a liftboat is not affected by weather, thus providing a stable platform for work in all types of conditions, which would cut non-productive time for clients considerably.
He said Vahana Aryan is a time- and cost-effective solution for maintenance of offshore platforms with its capability to quickly move between locations, without the use of external tugs.
“Liftboats are mainly focused on the operating expenditure budgets of oil companies. There is a substantial number of long-serving platforms in the Middle East and Asia regions, and liftboats will be used to maintain these platforms,” he added.
Vahana Aryan is expected to be delivered and handed over for full operations at the end of April 2018.