KUCHING: Ocean Vantage Holdings Bhd (OVH) has reported a 77 per cent increase in group revenue to RM47.5 million in first quarter ended March 31, 2023 (Q12023) against RM26.8 million in Q12022, thanks to the Bintulu project.
The company said the higher revenue was contributed by the engineering, procurement and commissioning (EPC) and project management segment which amounted to RM21 million, mainly due to revenue derived from the Bintulu Additional Gas Sales Facility 2 (BAGSF 2) project.
“Meanwhile, both revenue stream from supply of manpower segment and supply of material, tools and equipment segment remained consistent through the current period,” OVH said in its financials.
The revenue growth drove the group’s pre-tax profit to RM3.14 million in Q12023 from RM1.9 million in Q12022.
Group net profit rose to RM2.35 million from RM1.39 million during the same period of comparison.
In the immediate preceding quarter (Q42022), OVH incurred pre-tax loss of RM3.76 million in revenue of RM51.3 million.
Commenting on prospects, OVH said it is anticipating a busy year ahead with the increase in drilling activities in Malaysia and globally which will translate into more EPC and project management as well as manpower supply related works for the group.
“The group is expecting to participate in more tenders through year 2023 and 2024 relating to various maintenance and construction projects both onshore and offshore.
“Aside from the O&G, the group will continue to explore opportunities in other business areas related to renewable including solar energy and the development of electric vehicle infrastructures,” it added.
OVH said despite the globally challenging business environment, the anticipated uptrend of energy prices has encouraged the global oil majors to continue their commitment to invest in the oil & gas (O&G) sector while committing to new investments in the green energy workspace.
“The recent decision of the Organisation of Petroleum Exporting Countries (OPEC) Plus countries to scale back production to further push up the price of crude oil may fuel more activities leading to the continual growth in the O&G industry.
“According to the recently published PETRONAS Activity Outlook 2023-2025, the O&G industry remains positive with PETRONAS committed to increase capital expenditure to RM300 billion over the next five years in its efforts to cater additional investment in its core business and the energy transition plan.”
Meanwhile, Reneuco Bhd (formerly known as KPower Bhd) said its wholly-owned subsidiary Reneuco RE Sdn Bhd has accepted a letter of award (LOA) from ZBS Optima Trading Sdn Bhd as the sub-contractor for the proposed development of Sg Rasau water supply scheme (Phase 1), Selangor, Package 2 — design and build of proposed Rasau treated water pumping station, treated water pumping mains to existing Bukit Lipat Kajang Reservoirs, distribution and associated works.
The sub-contract sum is about RM22.88 million.
“The sub-contract works shall commence in May 2023 and shall be completed by May 2024,” it added.
Reneuco said the LOA represents an opportunity for Reneuco to expand its product offerings and enhance its technical capabilities.
“Through the LOA, Reneuco would not only have the chance to contribute to the overall improvement of Selangor state’s water infrastructure but also to broaden its market presence and establish strategic partnerships with the water infrastructure sector. The LOA would enable Reneuco to strengthen its competitive edge and foster long-term growth in the local economy,” said the company.
