The Contracts relate to the provision of corrosion prevention services, specifically in blasting and painting services on jack-up rigs (totaling US$7.65 million) and the provision of infrastructure engineering services specifically in the electrical installation and testing services on jack-up rigs (totaling US$1.85 million).
Work for its Contracts, being the largest set of orders to date from a single customer, will commence in the middle of 2007 and be completed by 2009. These transactions have enhanced BKM's order book and are expected to have a positive impact on the Group's 2007 earnings.
"We are very pleased to secure these contracts from the subsidiaries of Labroy Marine Limited," said Chua Beng Kuang, BKM's managing director. "This is a clear signal of their confidence in the Group's ability to deliver quality services in a timely manner. The Contracts represent a significant milestone in our foray into the growing offshore oil and gas sector. We are currently also in active discussions with several potential customers in this sector for future contracts."
Beng Kuang Marine Limited ("BKM") and its subsidiaries (the "Group") are established providers of corrosion prevention services, infrastructure engineering services, as well as the supply and distribution of hardware equipment and tools to the marine and offshore oil and gas industries. The Corrosion Prevention and Supply and Distribution divisions have always been the main revenue drivers of the Group. However, with the rapid growth in shipbuilding and rig building projects, BKM expects the Infrastructure Engineering division to be a key growth driver in the future. For the Infrastructure Engineering division, BKM provides turnkey engineering services from planning, project management to implementation involving fabrication, corrosion prevention, testing, installation and pre-commissioning of steel work modules and structures for customers in the offshore oil and gas industry.
Labroy Marine Limited is a fast-growing group principally engaged in rig building, shipbuilding, repair and shipping. It has a diverse fleet of more than 180 vessels comprising tankers, containers, supply vessels, tugs and barges. Today, it is one of the largest tug and barge owners-cum-operators in South-East Asia. Labroy also owns and operates one of the largest shipyards in Batam, Indonesia.
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