Pan-United Wins $31 Million in Repair & Conversion Contracts

Pan-United Marine has been awarded four contracts worth about S$31 million for its ship repair and conversion division. The contracts involve the re-activation of two drillships and the conversion of two general cargo vessels into self-discharging cement carriers. The projects are expected to be completed this year.

"This is a strong start for our ship repair and conversion division in 2006. These jobs will also enable PUM to efficiently utilize the strengths of our two yards," said Mr. Henry Ng, PUM's Executive Chairman.

He added: "We are encouraged by the higher level of enquiries in repair and conversion, driven by the firm offshore market and infrastructure demand. We are also pleased to be involved again in the reactivation of drillships, after successfully completing two other similar projects, one each in 2002 and 2004. "

PUM will re-activate the drillships "Neptune Discoverer" and "Neptune Explorer" for Neptune Marine Oil and Gas Limited. For Neptune Explorer, most of the labor intensive work such as steel/pipe work, blasting and painting will be done at PUM's Batam yard before the drillship is towed to its Singapore yard for equipment installation and testing.

The conversion contract from Kristian Gerhard Jebsen Skipsrederi A/S of Norway (KGJS) involves two 97 meters general cargo vessels which will be converted into cement carriers at its Batam yard. KGJS owns a fleet of cement carriers, oil-bulk-ore carriers and oil tankers.

PUM recently announced a sterling set of full-year results with revenue rising 10% from S$221.8 million to S$243.8 million in 2005. Net profit jumped 3.6 times to S$16.6 million on higher profit from ship repair. The strong 2005 performance also lifted ROE to 15.4%, up from 3.5% in 2004.

The PUM Group is a regional player with shipyard facilities providing quality, cost-effective, customer-focused products and services. It conducts activities via two shipyards that it owns and operates: a 11ha yard in Singapore, under Pan- United Marine Limited; and a 22ha yard in Tanjung Uncang, on the northwest coast of Batam, Indonesia, under PT Pan-United Shipyard Indonesia.