Advertised: 26th April 2011 | Closing Date: 27th May 2011
Welding Inspector
Work Location : Sabah
Salary: Negotiable
Jobs Vacancies:
8 Welding Inspector and Evaluator of job at site (Certified Welding Inspector for Oil & Gas Industries).
Interested candidates are invited to apply via JobsCentral(http://www.jobscentral.com.my/view/simpleProfile/9108/28517)
Wednesday, April 27, 2011
RM1.15bil shot in the arm for Sime
PETALING JAYA: The RM1.15bil contract win by Sime Darby Bhd's wholly-owned Sime Darby Engineering Sdn Bhd to fabricate topsides for the Kebabangan northern hub development project is viewed positively by analysts as it shows progress for the conglomerate to turn around losses in the oil and gas (O&G) division.
The project is secured from Kebabangan Petroleum Operating Company Sdn Bhd.
“This is good news as the contract more than doubles the group's order book to RM2.2bil. It will enhance the financial year (FY) 2012 to 2013 earnings by 1% and boost investors' confidence in the turnaround efforts for the oil & gas unit,” said CIMB Research senior regional analyst Ivy Ng.
AmResearch analyst Alex Goh said this contract will cause Sime's O&G order book to surge by 77% from RM1.5bil as at Dec 31, 2010 to RM2.7bil.
He believes this domestic contract could lead to a turnaround in the O&G segment, which recorded a loss of RM24mil in the first half of 2011.
Goh said that as the contract would be undertaken over 29 months from April 22, 2011, full-year contribution from this job would materialise in Sime's FY2012-13.
It adds that the Kebabangan contract could marginally add RM20mil or 0.5% to Sime's earnings over the period.
Ng said this contract win was not a surprise as the group had been bidding for a few large domestic projects for some time.
It marks Sime's first local contract win since the cost overruns for its energy & utilities unit grabbed the headlines last year. Sime Darby's former chief executive officer CEO Datuk Sri Zubir Murshid was shown the door in connection with the cost overruns involving projects in Qatar and the Bakun hydro-electric dam.
Sime's total provisions for its 2010 financial year, of which the O&G projects in Qatar accounted for a staggering RM2.08bil.
Meanwhile, another analyst added that looking at Sime Darby's track record, it had always delivered when it came to local projects.
“It only got into trouble when they went overseas, perhaps because they were not familiar with the policies or environment there. Hence, the execution risk of a local contract is a lot lower,” said the analyst.
Sime Darby Engineering has two ongoing projects with Oil & Natural Gas Corp Ltd (ONGC).
The first is the fabrication of five well-head platforms worth RM233mil to be completed in April 2011, and the second is a lump-sum turnkey offshore engineering, procurement, construction, installation and commissioning contract for a central processing platform (33,600 tonnes) and living quarters worth RM1.6bil due in March 2012.
At present, Petronas Carigali has a 40% stake in KPOC, Shell 30% and ConocoPhillips 30%.
The Kebabangan platform comprises a single-integrated drilling, oil and gas production, utilities and quarters topsides on a fixed eight-leg jacket in 142-m deep water.
Kebabangan will be the hub for development of deepwater and on-shelf oil and gas field off northern Sabah.
Gas produced from the Kebabangan cluster of the Kebabangan, Kamunsu East, Kamunsu East Upthrown and Kamunsu East Upthrown Canyon fields is destined for Petronas' liquefied natural gas complex at Bintulu.
Last month, Sime Darby Engineering announced that it will see a write back of some RM100mil in its profit-and loss-statement from a settlement agreement with Maersk Oil Qatar A/S for a contract signed four years ago.
Sime Darby Engineering entered into a US$632mil contract on Feb 20, 2007 with Maersk Oil Qatar to design, engineer, procure and transport to the latter's designated off-shore location, install, tie-in and deliver the facilities and components forming part of the latter's block-5 development plan 2005.
Both companies reached a settlement on completion of outstanding works and closed out on claims and payment issued under the contract pursuant to a close-out agreement dated March 17, this year.
The project is secured from Kebabangan Petroleum Operating Company Sdn Bhd.
“This is good news as the contract more than doubles the group's order book to RM2.2bil. It will enhance the financial year (FY) 2012 to 2013 earnings by 1% and boost investors' confidence in the turnaround efforts for the oil & gas unit,” said CIMB Research senior regional analyst Ivy Ng.
AmResearch analyst Alex Goh said this contract will cause Sime's O&G order book to surge by 77% from RM1.5bil as at Dec 31, 2010 to RM2.7bil.
He believes this domestic contract could lead to a turnaround in the O&G segment, which recorded a loss of RM24mil in the first half of 2011.
Goh said that as the contract would be undertaken over 29 months from April 22, 2011, full-year contribution from this job would materialise in Sime's FY2012-13.
It adds that the Kebabangan contract could marginally add RM20mil or 0.5% to Sime's earnings over the period.
Ng said this contract win was not a surprise as the group had been bidding for a few large domestic projects for some time.
It marks Sime's first local contract win since the cost overruns for its energy & utilities unit grabbed the headlines last year. Sime Darby's former chief executive officer CEO Datuk Sri Zubir Murshid was shown the door in connection with the cost overruns involving projects in Qatar and the Bakun hydro-electric dam.
Sime's total provisions for its 2010 financial year, of which the O&G projects in Qatar accounted for a staggering RM2.08bil.
Meanwhile, another analyst added that looking at Sime Darby's track record, it had always delivered when it came to local projects.
“It only got into trouble when they went overseas, perhaps because they were not familiar with the policies or environment there. Hence, the execution risk of a local contract is a lot lower,” said the analyst.
Sime Darby Engineering has two ongoing projects with Oil & Natural Gas Corp Ltd (ONGC).
The first is the fabrication of five well-head platforms worth RM233mil to be completed in April 2011, and the second is a lump-sum turnkey offshore engineering, procurement, construction, installation and commissioning contract for a central processing platform (33,600 tonnes) and living quarters worth RM1.6bil due in March 2012.
At present, Petronas Carigali has a 40% stake in KPOC, Shell 30% and ConocoPhillips 30%.
The Kebabangan platform comprises a single-integrated drilling, oil and gas production, utilities and quarters topsides on a fixed eight-leg jacket in 142-m deep water.
Kebabangan will be the hub for development of deepwater and on-shelf oil and gas field off northern Sabah.
Gas produced from the Kebabangan cluster of the Kebabangan, Kamunsu East, Kamunsu East Upthrown and Kamunsu East Upthrown Canyon fields is destined for Petronas' liquefied natural gas complex at Bintulu.
Last month, Sime Darby Engineering announced that it will see a write back of some RM100mil in its profit-and loss-statement from a settlement agreement with Maersk Oil Qatar A/S for a contract signed four years ago.
Sime Darby Engineering entered into a US$632mil contract on Feb 20, 2007 with Maersk Oil Qatar to design, engineer, procure and transport to the latter's designated off-shore location, install, tie-in and deliver the facilities and components forming part of the latter's block-5 development plan 2005.
Both companies reached a settlement on completion of outstanding works and closed out on claims and payment issued under the contract pursuant to a close-out agreement dated March 17, this year.
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