Tuesday, October 1, 2013


It had denied that it was close to winning a significant contract which claimed that the company was a frontrunner for the contract refereed to as SK316 project.

This contradicts with the MD and CEO’s view that THHE and McDermott Intl incorporated have equal chances of winning the project.

To recap it was reported that it is close to winning a significant contract that would likely give it a re-rating of sorts.

9.29% owned by pilgrim fund Lembaga Tabung Haji holds 29.59% and in which tycoon Tan Sri Quek Leng Chan has about 9.09% via GuoLine Capital Ltd (GCL) and his own name.

Market talk is that THHE is the frontrunner for the massive fabrication job by Petroliam Nasional Bhd (Petronas) for the latter’s SK316 field. That THHE had jointly bid for the US$1bil (RM3.22bil) job with McDermott International Inc has already been announced.

Petronas would announce the winner in Oct 2013.

Meanwhile the transformation of THHeavy remains on track as it is set to finalise its share swap and JV agreement with McDermott Intl Inc within weeks.

Once the share swap and JVA are completed, THHeavy will have four core companies than can provide the full spectrum of EPIC jobs within the oil nad gas construction and fabrication industry.

It is also in the midst of acquiring a 200 acre site on Pulau Indah to expand its yard costing the group about rm200 million. It will have to spend an additional rm100 million on the infra.

It has yet to finalise how it will fund the yard expansion. It may embark on rights issue or private placement.

It stated that it is close to closing a charter (FPSO vessel require by Lundin Pet and JX Nippon Oil & Gas Exploration) by end 2013 which is worth not less than US$400 million to US$500 million.

Despite delay in the conclusion of the share swap and JVA, TTHeavy and McDermott are jointly bidding for fabrication and marginal field risk service contracts worth a combined value of more than rm8 billion.

TTHeavy is awaiting the outcome of the award of rm500 million worth of fabrication jobs in one or two months time from Sept 2013.

Together with McDermott, TTHeavy has out in bids for the construction of two central processing platforms for the SK136 block worth about US$1 billion and for the Sepat oilfield. The group is also bidding for a wellhead and pipelaying installation contract in Sabah.

It has also bid for Pan Malaysia umbrella contracts for transportation and installation jobs worth about rm10 billion.

It is also bidding for the development of marginal fields.

It has an order book of about rm300 million.

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