KUCHING: Sarawak-based Ocean Vantage Holdings Bhd (OVH) hopes to use the completion of PETRONAS Bintulu Additional Gas Sales Facility 2 (BAGSF2) project as the stepping stone for the group to further expand its reach in other downstream projects in the oil & gas (O&G) industry, especially in Bintulu area.
In expressing such hope, OVH chairman Nor Azzam Abdul Jalil said the group intends to build its strength in the O&G downstream sector by actively bidding more projects.
OVH was awarded the civil, building and piling works for the BAGSF2 project for a contract sum of RM71.32 million in 2022. The project is the largest ever downstream O&G project OVH has secured so far.
“The BAGSF2 project is currently in progress with almost 60% work done with full completion expected within this year (2023),” said Nor Azzam in the company’s 2022 annual report.
In 2022, he said the group completed the acquisition of a 70%-owned subsidiary — ESPRAT — as it expands its existing range of services in the provision of welding habitats for the O&G industry.
ESPRAT is involved in the provision of manufacturing, selling and providing rental of welding habitats that allows offshore welding works in hazardous areas to be carried out safely within the confines of the enclosed welding habitats.
Moving forward, he said the group shall remain focused on ensuring the delivery of its key long-term strategies which is to continue leveraging its expertise and exposure in the upstream O&G sector to improve its financial strength.
The group will also continue its efforts to broaden its range of services, by either actively securing more new customers or expanding into other regions which it has yet to explore.
“The group continues to pursue opportunities in the Renewable Energy (RE) segments which include solar energy and electric vehicle (EV) infrastructure projects. These include evaluating and reassessing the strategies in pursuing opportunities in these areas.
“To date, the group has secured small scale solar projects and is in the midst of pursuing EV infrastructure projects in several states.
“Recent positive news and support from government of Malaysia to rapidly expand the EV ecosystem to meet its energy transition and reduce carbon emission is expected to augur well for the group’s future plans in expanding into this segment,” added Nor Azzam.
OVH said despite the globally challenging business environment, the anticipated uptrend of energy prices had encouraged the global oil majors to continue their commitment to invest in the O&G sector while committing to new investments in the green energy workspace.
“The group remains cautiously optimistic that the outlook for the financial year 2023 will be encouraging with improving of economic activities globally and the promising outlook of a newly elected stable government.
“The decision of the OPEC Plus countries to scale back production to further push up the price of crude oil will further fuel more activities leading to continual growth in the O&G industry.
“The recently published PETRONAS Activity Outlook (PAO) 2023-2025 remains positive with PETRONAS committed to increase its capex to RM300 billion over the next five years in its efforts to cater for additional investment in its core business and the energy transition plan,” added the company.
OVH said the group is anticipating a busy year ahead with the increase in drilling activities in Malaysia and globally, which will translate into more engineering, procurement and construction (EPC) and project management and manpower supply related work for the group.
“The expected potential new tenders related to various maintenance and construction projects both onshore and offshore will see the group participating in more tenders in year 2023 and year 2024.
“Aside from the O&G, the group will continue to explore opportunities in other business areas related to RE, including solar energy and the development of EV infrastructures,” it added.
OVH said its management recognises the importance of investing in human capital development through training and new recruitment to grow a stronger and more resilient team that will not only adapt to the ever-changing landscape but will be crucial in contributing towards the group’s continual growth.
In financial year 2022 (FY2022), OVH saw its group revenue rise by 23.62 per cent to RM155.1 million from that of FY2021 but it incurred after-tax loss and minority interest of RM1.11 million. The loss was mainly because of impairment on trade receivables of RM14.1 million for the financial year under review.
This was the first loss recorded by OVH since its listing on Bursa Malaysia ACE Market in 2020.
