Vastalux ... Jun 09

It plans to bid for oil and gas projects worth US$50mil to US$100mil (RM176.5mil to RM353mil) in Saudi Arabia when its proposed joint-venture company with partners from that country is set up by the third quarter 2009.

The projects would be in hook-up and commissioning, topside maintenance, minor fabrication and onshore construction.

They are also in the process of bidding for contracts in Indonesia worth about US$20mil to US$40mil (RM70.6mil to RM141.2mil) and completing a land purchase in Vietnam as part of its overseas business expansion plans.

Currently, the group’s major businesses in offshore and onshore hook-up and commissioning and onshore facilities maintenance contributed 85% to 90% to its revenue.

Currently, the group was handling close to RM100mil worth of contracts for offshore construction.

The group was currently tendering for local projects worth RM700mil from oil majors such as Petroliam Nasional Bhd and Shell, said Azman, adding that it expected a success rate of about 30% or about RM210mil of jobs.

Vastalux managed to reduce its debt in 2008 and with current projects that can last until 2010, the company is doing well.

The company reported slightly improved profit before tax margin to 11.4% in FY08 from 10.9% in FY07 while its borrowings declined 24.5% to RM72.9mil against RM96.5mil previously.

Vastalux registered a net profit of RM18.8mil in FY08, a 76% increase from FY07. Its revenue rose 30% to RM186mil.

Vastalux reported net profit of RM2.76mil on revenue of RM58.48mil in its first quarter ended March 31.

Related post:-
IPO: Vastalux EnergyVastalux ... Mar 09