Written by Joseph Chin
Friday, 19 June 2009 18:12
KUALA LUMPUR: Wah Seong Corporation Bhd (WSC) is looking at possible acquisition in the second half of 2009 to beef up its oil and gas (O&G) operations and to make further inroads overseas.
WSC managing director and group CEO Chan Cheu Leong said on June 19 these measures were necessary to strengthen its global presence this year for O&G and industrial services operations.
WSC’s current order book was RM1.36 billion, of which 76% was from the O&G division. It was bidding for both local and overseas O&G projects, including major pipe coating projects in the Australasia region, he said in a statement issued after the AGM in Penang.
On WSC’s gas compressor operations, Chan said the business is on track for growth following high demand for natural gas from the market as it is an environmentally friendly source of energy.
“Although our core O&G activity is pipe-coating, the gas compressor operation provides recurring cash flow to the group, and is a resilient business with strong fundamentals.
“As such, we plan to further grow the rental side of the gas compressor business and in fact, we have invested more than RM150 million in building up our rental fleet over the past few years,” he added.
WSC was tendering for gas compressors rental contracts in the Middle East and Asia Pacific. Currently the division has 74,000 HP in its fleet with a utilisation rate of 85% and the company’s long term plan is to increase its rental fleet HP by between 10% and 15% each year.
On investments in O&G, Chan said WSC would focus on research and development (R&D) to strengthen its pipe coating operations. This included recent investments in specialised concrete-coating process technology in Europe , introduction of new products and solutions for deepwater coating and other new variants of anti-corrosion coatings.
On the industrial services division (ISD), Chan said WSC would benefit from infrastructure and other stimulus projects in Malaysia and abroad.
On the ISD’s spiral steel pipe manufacturing business, he said there were plans to penetrate the huge Australian water pipes market by the first half of 2010. Now, WSC was only supplying piling pipes.
“The company’s pipe manufacturing operations is also set to benefit on the home front and in Singapore as there is currently about RM400 million worth of piling pipes that will be tendered out in the next six months,” said Chan.
Chan also said WSC’s plant in Seberang Prai, Penang recently had another production line which would enable it to manufacture 100,000 tonnes of pipes per annum, from 60,000 tonnes now.
Friday, 19 June 2009 18:12
KUALA LUMPUR: Wah Seong Corporation Bhd (WSC) is looking at possible acquisition in the second half of 2009 to beef up its oil and gas (O&G) operations and to make further inroads overseas.
WSC managing director and group CEO Chan Cheu Leong said on June 19 these measures were necessary to strengthen its global presence this year for O&G and industrial services operations.
WSC’s current order book was RM1.36 billion, of which 76% was from the O&G division. It was bidding for both local and overseas O&G projects, including major pipe coating projects in the Australasia region, he said in a statement issued after the AGM in Penang.
On WSC’s gas compressor operations, Chan said the business is on track for growth following high demand for natural gas from the market as it is an environmentally friendly source of energy.
“Although our core O&G activity is pipe-coating, the gas compressor operation provides recurring cash flow to the group, and is a resilient business with strong fundamentals.
“As such, we plan to further grow the rental side of the gas compressor business and in fact, we have invested more than RM150 million in building up our rental fleet over the past few years,” he added.
WSC was tendering for gas compressors rental contracts in the Middle East and Asia Pacific. Currently the division has 74,000 HP in its fleet with a utilisation rate of 85% and the company’s long term plan is to increase its rental fleet HP by between 10% and 15% each year.
On investments in O&G, Chan said WSC would focus on research and development (R&D) to strengthen its pipe coating operations. This included recent investments in specialised concrete-coating process technology in Europe , introduction of new products and solutions for deepwater coating and other new variants of anti-corrosion coatings.
On the industrial services division (ISD), Chan said WSC would benefit from infrastructure and other stimulus projects in Malaysia and abroad.
On the ISD’s spiral steel pipe manufacturing business, he said there were plans to penetrate the huge Australian water pipes market by the first half of 2010. Now, WSC was only supplying piling pipes.
“The company’s pipe manufacturing operations is also set to benefit on the home front and in Singapore as there is currently about RM400 million worth of piling pipes that will be tendered out in the next six months,” said Chan.
Chan also said WSC’s plant in Seberang Prai, Penang recently had another production line which would enable it to manufacture 100,000 tonnes of pipes per annum, from 60,000 tonnes now.