KUALA LUMPUR: Offshore help outfit Icon Offshore Bhd
expects to chart a better financial performance for the 12 months ending Dec 31, 2022 (FY2022) on the again of upper demand for its companies in addition to the uptick in the every day constitution charge (DCR).
Managing director Datuk Seri Hadian Hashim mentioned the corporate has additionally improved the utilisation charge of its offshore help vessels (OSVs) and jack-up drilling rig to 90 per cent final 12 months from 72 per cent in 2019.
“The OSVs are earning money, the rig is performing very nicely and there’s no downtime since we began operation of the rig from the tip of quarter one to the start of quarter two, we’ve got been 100 per cent working.
“We even have made lots of adjustments by workers numbers, the fee and the way we may do better. We have completed rationalisation of distributors and in addition streamlined lots of issues,” he instructed Bernama.
Hadian took the helm of Icon Offshore in September 2019 with the duty of turning the group round. Prior to Hadian’s appointment at Icon Offshore, the group didn’t have a CEO for 2 years after the departure of Datuk Seri Amir Hamzah Azizan in 2017.
“The firm has completed moderately nicely in the final three years. I’m blissful that the corporate has gone the best way it has, primarily as a result of there is no such thing as a exterior expertise in that sense, apart from me and I did not include an entourage.
“What it means is that there are good abilities in the corporate and you should open up and be extra participating. When I got here to the corporate, the primary day I got here I did a city corridor and declared to the workers that that is what we have to do,” he famous.
Hadian mentioned Icon Offshore’s order guide was at a wholesome stage of RM743 million, comprising a majority of RM677 million in the OSV section in Malaysia and Brunei, sufficient to maintain the corporate busy for two.5 years whereas the remaining was in its drilling section.
Its tender guide at the moment stands at RM1.24 billion, consisting of RM930 in the OSV area with the remaining in drilling operations.
Currently, 40 per cent of Icon Offshore’s income is contributed by its OSV enterprise in Malaysia adopted by OSV operations in Brunei (30 per cent) and its drilling section contributes the remaining 30 per cent.
The group has accomplished its drilling enterprise acquisition in February 2021 which was totally operational in the second quarter of 2021.
“For us, the acquisition is opportunistic. We took a approach under market worth and we noticed that it has labored, it’s simply that issues must be better organised whether or not it’s in phrases of financing and folks. The draw back for us may be very minimal,” mentioned Hadian.
Icon Offshore posted a web revenue of RM25.58 million for FY2021 towards RM27.77 million year-on-year.
The full-year income of RM301 million breached the RM300 million mark, the extent which was final recorded by Icon in FY2014 on the peak of crude oil costs, towards RM212.07 million a 12 months earlier primarily as a consequence of income from the drilling section and better utilisation of vessels in the OSV section for the present 12 months.
Expansion into new market
Icon Offshore at the moment has presence in Malaysia and Brunei.
Hadian mentioned Icon Offshore is just not in a rush to develop into new markets as the corporate “has sufficient to digest in the mean time”. He identified the corporate has a powerful associate in Brunei.
“What we’ve got completed in Brunei final 12 months was to allow them to handle all three AWBs for us and in addition to no less than enhance the native participation to satisfy the Brunei requirement.
“Regional growth past Brunei, I will not rule it out however I’m not saying that it is going to be rapid as a result of I wish to chew on what I’ve,” mentioned Hadian, including that the corporate is seeking to transfer into securing lighter property.
“There is sufficient publicity by the corporate in heavy property. We want to have a look at whether or not any development or future growth shall be in the sunshine companies both in human useful resource or property,” he added.
On mergers and acquisitions, Hadian mentioned Icon Offshore is open to alternatives with its give attention to service oriented property.
“If something cheap comes alongside, they usually want companions or money, why not? But it won’t be anymore heavy property. We are just a few prospects however we’re not in a rush in that sense. But we’ll take it up on the worth that we wish,” he added
Russia-Ukraine Conflict
Hadian mentioned the continuing Russia-Ukraine battle would pose a short-term impression on the oil and fuel business.
He identified that the world, particularly Europe, wants Russia as 40 per cent of Russian fuel and 25 per cent of its crude oil went to Europe. “In at this time’s phrases, it could imply one billion euro per day that the Russians are reaping out of this. Will the oil costs proceed to be excessive?
“There shall be checks and balances. If you ask me what would be the cheap worth going ahead, it could be US$80 to US$90 per barrel, a cushty vary and in most oil firms’ budgets,” he added.
Last week, United States President Joe Biden imposed a direct ban on Russian oil and different power imports in retaliation for Russia’s invasion of Ukraine, whereas the United Kingdom mentioned it could part out imports by the tip of 2022.
The US import ban on Russian oil is a part of a broader prohibition that features pure fuel and coal.
At the time of writing, Brent crude rose 3.05 per cent to US$112.70 per barrel. – Bernama
