Wah Seong capitalises on Petra Energy for more local jobs

by **Cals** Fri 21 Jun 2013, 15:44

Wah Seong capitalises on Petra Energy for more local jobs
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Friday, 21 June 2013 15:29

KUALA LUMPUR (June 21): Wah Seong Corp Bhd will capitalise on its 26.9%-owned associate PETRA ENERGY BHD [] to gain larger exposure in the Malaysian oil and gas (O&G) support-services market.

Wah Seong managing director and group chief executive Officer Chan Cheu Leong said the firm is eyeing a bigger role in the local O&G sector as national oil firm Petroliam Nasional Bhd (Petronas) increases exploration and production jobs.

“We anticipate a greater participation in the Malaysian O&G sector through our associate company Petra," Chan said in a statement today.

The statement was issued in conjuction with Wah Seong's annual general meeting in Penang today.

Chan said Wah Seong hopes to capitalise on Petra's expertise in brownfield O&G operations to secure projects in enhanced oil recovery, small-field development and pipeline replacement.

State-owned Petronas has committed to allocate capital expenditure of RM300 billion between 2011 and 2015.

Meanwhile, Chan said Wah Seong has replenished its order book to RM1.5 billion in the first quarter of this year. He said this is expected to bring a positive impact to the firm's current financial year and beyond.

Chan said the company remains upbeat on the O&G sector which should see more activities in the next 12 months and coming years.

“The market for pipeline contracts is encouraging and we expect to see further growth in this sub-sector in the O&G industry.” he added.

During the first quarter of 2013, Wah Seong's RM1.5 billion orderbook comprises RM1.04 billion worth of jobs for the O&G segment, RM276.6 million for the renewable energy segment, and RM171.2 million for the industrial trading and services segment.

“This order book together with a number of potential opportunities that the group is focusing on at the moment is expected to have a positive impact on financial performance for the current and following financial years,” Chan said.