TGOFFs

It is looking to tie up with foreign oil and gas players to aid to its competitiveness in securing jobs.

A foreign partner would be able to gain access to local jobs by leveraging Tanjugn Offshore’s various licenses from Petronas.

With a reputable foreign partner, it can leverage on the partner’s branding in bidding for jobs as well as expanding its product offerings.

The group is already bidding for several local contractors and a foreign partner will increase its chances of winning.

It is incurring losses currently (June 2013) and it will need to find a fresh flow of contracts to return to the black for 2013.

As at Sept 30 2012 the group incurred an accumulated net loss of rm51.14 million, compared to an accumulated net profit of rm20.6 million at the beginning of 2012.

This was mainly due to rm127.97 million in dividend payout following the disposal of the group’s marine vessel arm to its major shareholder is Ekuiti Nasional Bhd for rm220 million in cash.

In the wake of the sale of its core marine vessels arm, it will be focusing equally on all its remaining core businesses – engineering, maintenance and trading. All are involved in the O&G sector. The sale of Kapal has left it with a stronger balance sheet to pursue more projects.