Singapore-based Swiber Holdings secured an engineering, procurement, installation and construction (EPIC) contract worth US$133 million from same Indian oil company, which awarded two major contracts in February and March.
Previous agreements involved surveys, design, engineering, procurement, fabrication, installation and commissioning of six pipelines totaling to 60km, scheduled for completion by 2Q 2016.
“To have the same client come back to us repeatedly demonstrates Swiber’s understanding of our client and the market, and our ability to bring the Group’s resources to bear to meet our client’s needs,” said group chief executive officer and president, Francis Wong.
The company is optimistic about prospects, Wong said, despite the fall in oil price and including the cutbacks in capital expenditure by some of the oil majors. “We believe that our strategy of establishing long-term relationships with clients and suppliers has put us in good stead for a time like this,” he noted.
As it is already working on eight new platforms and associated pipelines in the same part of India for the same client, it will be able to deploy its vessels and streamline its processes more efficiently.
The firm’s order book is at $2 billion year to-date, which is a new record for the group. The new contracts in India will start contributing to the group’s earnings from the second half of this year.
In February, Swiber reporteda net profit of $31.2 million for the financial year 2014. Net profit for FY2014, however, decreased substantially from $90.9 million the year before. Around 66% of the group’s revenue was derived from Southeast Asia, 27% from Latin America with the remaining 6% from South Asia and other markets.
Image: Swiber Kaizen 4000 vessel. From Swiber.
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