November 6, 2013

Barakah Offshore To Secure Up To RM600 Million Contracts Yearly

Barakah Offshore Petroleum Bhd, an oil and gas services provider, which made its debut on the Bursa Malaysia Main Board today, aims to secure between RM500 million and RM600 million worth of contracts yearly, supported by continuous demand in the industry.

Vice-President-cum-Chief Financial Officer Firdauz Edmin Mokhtar said the contracts will be secured through its three core businesses -- pipeline services; transportation and installation; and hook-up commissioning.

"Currently, the pipeline services are the largest contributor to Barakah's earnings. We expect transportation and installation business will be the next key contributor as the company has invested a lot in the assets given its business potential," he said.

Among the assets is a new pipelay barge "PLB-Kota Laksamana 101, which the group expects to be a catalyst for its growth in the transportation and installation segment, he told a press conference after the listing.

The listing saw Barakah gaining a 33 sen premium to 98 sen over its initial 65 sen offer price, with 1.4 million shares transacted at the opening bell.

"With the listing, the company is eyeing between 20 per cent and 30 per cent increase in revenue for its current financial year," Firdaus Edmin said.

For the financial year ended Sept 30, 2013, the group recorded about RM202 million revenue, with net after-tax profit of about RM33 million.

Barakah's shares rose 46.5 sen to close at RM1.00, with 63.272 million lots transacted.