Handal Resources to expand to Southeast Asia

KEMAMAN: Handal Resources Sdn Bhd is planning to expand its footprint to East Malaysia as well as Myanmar, Indonesia, Vietnam and Brunei by 2021.

Its Executive Director Joel Emanuel Heaney said the company, which provides offshore crane services to the oil and gas (O&G) industry, is now in talks with petroleum governing bodies of these countries.

“We hope once we finalise the details, we can start bidding in projects,” he said during a media briefing.

Upon its success in expanding its footprint, Heaney said more than 300 skilled jobs would be created.

“As a company that provides integrated offshore crane services that has the American Petroleum Institute (API) 2C recognition, we believe that this standard coupled with our clean track record will push us further in the offshore crane industry,” he said.

The company currently has RM82.1 million in its order book and RM67 million in its current tender book.

“From the RM67 million, RM15 million is for crane fabrication, RM18 million is for integrated services and the remaining RM35 million is for rental cranes,” he said.

Heaney explained that the hike in rental hike was due to the lower oil price and the feeling among O&G companies that there is no need for a permanent crane to be placed at the wells. As of now, Handal Resources has sold seven cranes that would be handed over next year.  – Bernama

“We are committed to turning around the company and return to profitability by 2020,” he said.

The company’s financial performance had improved for the second quarter ended June 30, 2018, supported by higher revenue from all segments.

The company’s revenue rose 26 per cent year-on-year to RM14.98 million from RM11.91 million, mainly contributed by its fabrication of crane and servicing of industrial equipment business segments.

The company’s net loss was also down 24 per cent at RM984,000 from the RM1.29 million reported a year ago as a result of the higher revenue and operating income registered for the majority of its business segments. –Bernama