Asian Geos eyes RM120m revenue

Asian Geos Sdn Bhd (AGSB) expects to achieve higher revenue of RM120 million by year-end from RM95 million currently,

with the formation of a new joint venture (JV) company with Gardline Geosciences Ltd.



The new JV would allow the company to provide integrated offshore

geophysical and geotechnical services in selected markets worldwide.



"This strategic global partnership underlines AGSB's expertise and
Gardline's confidence in our company, that will allow us to further
expand in the deepwater segment and enhance our niche service offerings
in Malaysia and globally.




"We have also embarked on a new business -- geophysical
survey -- that will contribute to our revenue, and we are targeting a
30 per cent growth annually," AGSB managing director Datuk Mohd Helmi
Zulkawi told reporters after formalising the JV agreement with Gardline
in Kuala Lumpur today.



Deputy Finance Minister Datuk Dr Awang Adek Hussein witnessed the ceremony.



Mohd Helmi said by venturing into the deepwater business it will
help the company to generate more revenue and income as the rate for
deepwater is twice or three times as much as for shale water.



He said the JV with Gardline would also account for the bulk of the increase in revenue generated outside Malaysia.



"For the past few years, the average is about 40 per cent local and
60 per cent international but as we go (further) with Gardline, we
expect growth to be more on the international side as the Malaysian
side will reach some limitations," he added.



The JV will see the Malaysian shareholder of AGSB participating in
a 25 per cent equity interest in a Special Purpose Vehicle (SPV),
established by Gardline.



Gardline, on the other hand, will acquire a 30 per cent stake in AGSB.



Under the strategic alliance, AGSB and Gardline will share their
engineering and technical resources and related assets, including soil
boring rigs and marine vessels through the SPV, to pursue international
offshore oil and gas projects.



Meanwhile, Gardline Managing Director Eric Zon said the
complementary relationship between the two companies would see the
former focusing on the territorial waters of Asia Pacific (excluding
Australia), the Middle East, East Africa and the Caspian Sea.



In another development, Mohd Helmi said AGSB do not have any plans for a listing exercise.



"It will always be in our plan to consider that for the future. For
the moment, we have enough capacity financially to finance our growth
and expansion," he added.



AGSB is currently among the leading offshore geotechnical
investigation and survey services providers to the oil and gas and
marine-related industries in Malaysia and Asian region.



Gardline is a leading marine contractor specialising in
geophysical, hydrographic, environmental, oceanographic and
geotechnical surveys. -- BERNAMA