Oilcorp bids for different projects to generate recurring income

Oil and gas firm, Oilcorp is currently bidding for projects worth RM 1.0 bn, says managing director Sunny Ng. He said 70-80 % of the projects that it had made bids for were local.
"We are going all out for oil and gas, petrochemicals and power plant projects so that we can generate recurring income. Oilcorp is aggressive in terms of securing tender and project," he told after the company's extraordinary general meeting.

The group provides engineering, procurement, construction and commissioning (EPCC) services to the oil and gas, petrochemical, power generation and semiconductor industries.
Among the overseas projects which the company hoped to secure, are the RM 60 mm tank farm project in Qatar, RM 38 mm power plant project in Bangladesh and a petrochemical plant in a West Asian country with direct investment of RM 100 mm.

The group currently has RM 280 mm of oil and gas-related fabrication jobs in its order book, including the RM 180 mm contract in Qatar secured in early July, whichwill last until end of next year.
"It's good considering that last year we only had about RM 100 mm in the book order. The current figure is almost three times bigger," Ng said.

Ng claimed that Oilcorp, together with its partner Intraline Resource, was the first Malaysian company to get an offshore revamp contract from Qatar Petroleum.
"That is why we can't afford to fail in this job. It will embarrass Malaysia. The project has already started and is even ahead of schedule. We are working very hard to ensure its success. It is also our biggest overseas venture so far," added Ng.

Oilcorp posted a turnover of RM 120 mm and a pre-tax profit of about RM 12 mm for the year ended Dec 31, 2003.
For the six months of 2004, its pre tax profit increase to RM 7.753 mm from RM 3.692 mm while revenue rose to RM 53.017 mm from RM 21.145 mm previously.