Swiber Receives LOI for Offshore Installation Project
Swiber Holdings has secured yet another project for its offshore Engineering, Procurement, Construction, Installation and Commission ("EPCIC") business.
The Group's wholly-owned subsidiary, Swiber Marine (M) Sdn Bhd, has signed a Letter of Intent worth approximately US$12.0 million for an offshore installation project in Malaysia. The project is expected to commence and be completed in September 2007.
Swiber's stature as an offshore EPCIC and marine support services specialist in the offshore oil and gas industry has swelled in line with its orderbooks. This latest project follows a slew of multi-million EPCIC projects secured by Swiber this year including:
-US$31.0 million offshore installation project in Malaysia secured in June 2007;
-US$21.3 million offshore installation project in Indonesia secured in May 2007; and
-US$146.4 million offshore installation project in Brunei secured in February 2007.
Commented Mr Raymond Goh, Swiber's Executive Chairman and Chief Executive Officer, "The value of the projects we have secured in 2007 has exceeded US$200 million. While we are very pleased with our phenomenal growth, the focus for us now is to obtain the necessary financial resources to invest in a spread of marine support and construction vessels to support our business growth in the future. Tapping the capital market is one of the routes we have undertaken to raise the funds for expansion."
In late June 2007, the Group raised approximately S$120.4 million by way of a private placement in which 55,350,000 new ordinary shares ("Placement Shares") were issued at an issue price of S$2.1748 per Placement Share.
More recently on 20 July, the Group launched a S$300 million multicurrency Medium Term Note program ("MTN Program") under which it may from time to time issue notes in series or tranches in Singapore dollars or any other currency as may be agreed between the relevant dealer of the MTN Program and Swiber. With this MTN program in place, Swiber will have the financing options and flexibility to access the capital markets swiftly, as and when the need arises.
Added Mr Goh, "Investing in and expanding our fleet is particularly relevant now as we are aggressively pursuing business opportunities in the Middle East and India markets, where offshore oil and gas opportunities abound."
Swiber currently owns and/or operates a fleet of 20 vessels comprising nine tug boats, nine barges, one crane barge (Dalihao) and one jack up barge. In addition, 12 vessels, comprising 11 tugs and one pipelay barge, are currently under construction/conversion.
In outlining its growth strategy, Swiber plans to expand its existing number and spread of vessels to include both offshore support and construction vessels
"The flourishing offshore oil and gas sector; buoyant demand for offshore EPCIC and
marine support services; our growing reputation as a top-notch offshore oil and gas
specialist; and our strong orderbooks – these are all signals indicating that this is the right
time to take our business to the next height. We hope to achieve this by scaling up our
operations with an expansion of our fleet strength," concluded Mr Goh.
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