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Thursday, June 9, 2011

Alam Maritim to win more jobs: HwangDBS (BT)

HwangDBS Vickers Research expects Alam Maritim to secure more contracts by year-end when vessel demand should have recovered significantly.

It also expects Alam Maritim to win more contracts from Petronas after delays in the first half of this year.

"After rough patches in the last two quarters when utilisation rates were badly affected by a lack of jobs, we expect a better performance in the next few quarters," it said in a research note today,

Alam Maritim is expected to turn profitable in the second quarter of this year on the back of RM140 million worth of new contracts secured in March and April, HwangDBS said, adding, the company is set for a sharp recovery in the offshore supply vessel (OSV) segment.

The company is bidding for RM500 million worth of marine charter contracts currently, which should improve its fleet utilisation.

"We are optimistic Alam Maritim's 41-vessel fleet will improve its chances of clinching more installation contracts with 1MAS-300, its first pipe-lay barge," HwangDBS added.

Meanwhile, it highlighted that the company's joint venture with state-owned Yayasan Sabah Shipping in April to provide offshore support vessels and construction services to the oil and gas industry in Sabah, would allow Alam Maritim to make inroads into the booming sector's activity.

"This could be a precursor for Alam Maritim to bag the coveted US$50-US$60 million Sabah oil & gas terminal's pipeline installation contract," HwangDBS said. -- Bernama

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