DESB Marine Services awarded Shell LCT contract

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DESB Marine Services awarded Shell LCT contract

KUCHING: Dayang Enterprise Holdings Bhd's wholly-owned subsidiary DESB Marine Services Sdn Bhd has been awarded a contract for the provision of one u

Dayang’s net profit soars to RM236.3m
Oversubscribed by 92.64 percent
DESB wins two contracts from Petronas Carigali

KUCHING: Dayang Enterprise Holdings Bhd’s wholly-owned subsidiary DESB Marine Services Sdn Bhd has been awarded a contract for the provision of one unit of landing craft tank (LCT) — Dayang Cempaka — by Sarawak Shell Bhd/Sabah Shell Petroleum Company Limited.

The duration of the contract is tentatively from Sept 26, 2022 for 548 days plus one extension option for six months.

“The value of the contract is based on work orders issued by Shell throughout the contract duration and shall include any or all other work and services which is generally related to the scope of works in this contract at a fixed schedule of rates,” Dayang said in a filing with Bursa Malaysia..

Dayang said the contract is expected to contribute positively to its earnings during the contract duration period.

Meanwhile, Cahya Mata Sarawak Bhd (CMSB) said its subsidiaries Cahya Mata Oiltools Sdn Bhd (Oiltools) and Oiltools International Sdn Bhd (Oiltools International) have mutually agreed with Scomi Energy Services Bhd and Scomi Oiltools to further extend the assets acquisition agreements’ cut-off date to August 31, 2022.

This is the second extension, the last from June 15, 2022 to August 15, 2022.

On March 17, 2022, Oiltools and Oiltools International entered into four conditional sales and purchase agreement with Scomi Energy and Scomi Oilfield, together with various companies and assets within the Oilfield group of companies (Oilfield group) for a total purchase consideration of RM21 million.

According to CMSB, the proposed acquisitions represent a strategic investment and potential synergy with the group’s existing businesses as well as the opportunity to diversify into the global energy sector and grow its revenue and earnings.

Scomi Energy, via the Oilfield group, is one of the top five global providers of drilling support services and products for the oil and gas industry. It offers drilling fluids services and drilling waste management services. Scomi Energy has a presence in 15 markets across Asia, Middle East, Europe and Africa with an ongoing order book.

The CMS management expects to leverage Oilfield group’s global presence to expand the group’s clientele and serve as a bridge for the expansion of its existing businesses into the markets where the Oilfield group has a presence.

“The group’s push into sustainability as a business strategy will benefit from Oilfield group’s waste management services and this business is expected to grow due to increasing drilling activity as crude prices remain elevated. The additional benefit from the proposed acquisitions is that the group will not take on additional debt while drilling and waste management services are asset-light businesses. The asset light structure will be the core business operating model for future growth,” CMSB had said earlier.

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