T7 Global eyes RM3b contracts

The bids are in the energy segment which includes MOPU, O&G-related projects, A&D and construction


T7 GLOBAL Bhd is aiming to secure contracts worth some RM3 billion from its energy, aerospace and defence (A&D) and construction sectors to optimise cashflow amid the challenging market environment.

Chairman Datuk Seri Dr Nik Norzrul Thani said majority of the bids the company has made are in the energy segment which includes the mobile offshore production unit (MOPU), oil and gas (O&G)-related projects, A&D and construction.

“We do a lot of maintenance facility contracts as well. We need short-term projects to be able to sustain our ‘bread and butter’ because constructing a MOPU will take 18-24 months, so we need to break the income gap.

“Our major project right now is a MOPU that will be ready next year — once it is operational, our gearing will be much better,” he told The Malaysian Reserve in a virtual interview yesterday.

Listed on the Main Market of Bursa Malaysia, T7 wants to be known as a high-value services provider and has an orderbook of RM2 billion now which is expected to last for 10 years.

T7 secured its first MOPU in 2005, leasing a converted unit to UK-based energy services firm Petrofac Ltd for the Cendor Oilfield Development Project, until the contract ended in 2014.

On Jan 4, T7’s unit Tanjung Offshore Services Sdn Bhd secured a 10-year contract from Petronas Carigali Sdn Bhd to provide a MOPU for the Bayan Redevelopment Project Gas Phase 2.

According to Nik Norzrul, the energy sector contributes 70% to the group’s revenue while the remaining 30% comes from the A&D and construction sectors at present.

He said the group remains keen to grow its marine businesses despite its memorandum of understanding (MoU) with Japanese Mitsui E&S Shipbuilding Co Ltd having been mutually terminated recently.

“Marine business is still very important for us. But we are not marine in terms of shipping, we are more on technology and system parts,” he added.

The termination of the MoU took effect the same day of the announcement on Oct 1. T7 entered the MoU via its wholly owned subsidiary, T7 Marine Sdn Bhd.

The three-year preliminary agreement was first announced on Sept 1 last year as the groups planned to collaborate and explore opportunities for the supply of ships in Vietnam.

The termination will not have any material financial impact on the company for the financial year ending Dec 31, 2021.