Handal Resources to increase overseas contribution to 20%

by **Cals** Sat 01 Jun 2013, 01:38

Handal Resources to increase overseas contribution to 20%
Business & Markets 2013
Written by Bernama
Friday, 31 May 2013 19:21

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PETALING JAYA (May 31): Integrated offshore crane services provider and fabricator, Handal Resources Bhd is eyeing to increase overseas contribution to 20 per cent of total revenue within five years.

For the financial year ended Dec 31, 2012, its overseas market accounted for less than five per cent of total revenue of RM97.6 million.

"We are targeting three core areas -- exploration and production, crane fabrication and rig fabrication -- to help us achieve the targets," Group Managing Director and Chief Executive Officer Mallek Rizal Mohsin told a media conference today.

Since its inception in 1988, the company has focused on the niche segment of crane services and fabrication, but it now wants to transform by extending the value chain in the oil and gas sector.

Among the key initiatives taken by Handal Resources currently is penetrating the Thailand market.

"We have reached the advanced stages of a vendor selection process in Thailand for a deal worth about RM100 million to deliver up to 20 units of offshore pedestal cranes under our Seacrane brand to a leading production sharing contract (PSC) contractor over a certain number of years," he said.

Last year, Handal Resources received a US$945,000 contract to supply offshore pedestal cranes to Indonesia.

The project was completed and delivered at end-2012 and the company is looking forward to securing more contracts from that country.

According to Mallek Rizal, the company had been invited to bid for two projects, one locally and the other from Indonesia, and it will submit the bids by next month.

"We hope to secure either one of the tenders and shall commence work in November this year," he said, adding that the project will bear fruit in the 2014 fiscal year.

On the rig fabrication business, he said the company received numerous queries on its rigs from local and overseas parties and it hoped to sell or lease them soon.

The company, which is based in Kemaman, Terengganu, currently leases and maintains a fleet of 19 offshore pedestal cranes installed on rigs owned by multinational oil and gas players.