Wah Seong CEO sees gains from O&G developments

by **Cals** Sat 22 Jun 2013, 16:53

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Published: Saturday June 22, 2013 MYT 12:00:00 AM
Updated: Saturday June 22, 2013 MYT 10:27:14 AM
Wah Seong CEO sees gains from O&G developments

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PETALING JAYA: Wah Seong Corp Bhd expects to benefit from developments in the oil and gas (O&G) industry, particularly with the increase in capital expenditure by state-owned oil firm Petroliam Nasional Bhd.
“The market for pipeline contracts is encouraging and we expect to see further growth in this sub-sector of the O&G industry,” managing director and group chief executive officerChan Cheu Leong said after the company’s AGM.
He said its O&G division had recently secured coating works for Statoil’s Polarled development project in the Norwegian Sea and the ExxonMobil Damar A to Lawit A full well- stream pipeline, Murphy SK development project and Sarawak ShellF14 and F29 projects in Malaysia.
“The securing of the RM611.3mil Statoil contract in Norway for pipe coating earlier this year was a breakthrough for the group into the European market. It reflects the acceptance of our Wasco brand, based on our track record to execute such jobs,” he said.
He said the company had managed to replenish and maintain its order book of RM1.5bil, which comprised RM1.04bil for the O&G segment, RM276.6mil for the renewable energy segment and RM171.2mil for the industrial trading and services segment.
Chan added that the company was anticipating greater participation in the Malaysian O&G sector via associate Petra Energy Bhd.
Wah Seong has a 26.9% stake in Petra Energy, which recently won a five-year contract from Petronas Carigali Sdn Bhd under the Pan Malaysia cluster of jobs for the provision of hook-up, commissioning and topside major maintenance services.
On its industrial services division, he said emerging markets such as Africa and Latin America had been identified as future growth regions.
He said Wah Seong had recently entered into a joint venture with Shinko Ind Ltd, a reputable and reliable manufacturer of steam turbines, to enhance technical collaboration and create the first manufacturing base for Shinko outside Japan.
“The collaboration is expected to create a competitive advantage to promote further growth of steam turbines in our renewable energy segment. Our clients are also rapidly expanding around the world and we would be able to complement their efforts through our strategy of expansion in our markets and operations,” he said.