Friday 29 Mar 2024
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KUALA LUMPUR (June 12): Alam Maritim Resources Bhd is bidding for up to RM3 billion worth of oil and gas support service contracts to sustain the company's financials, group managing director and chief executive officer Datuk Azmi Ahmad said.

Azmi said Alam Maritim's (fundamental: 1.6; valuation: 1.5) success rate was between 10% and 15%.

He said the group's current order book stood at RM900 million, which could keep the company busy for the next two to three years.

"We are tendering for RM2.5 billion to RM3 billion worth of projects. Alam is eyeing a vessel utilisation rate of between 73% and 75%, higher than 71% in last year," Azmi said at a press conference after the company's annual general meeting here today.

Alam Maritim is also eyeing the merger and acquisition route to grow its business. Azmi said the company intended to take advantage of current low crude oil prices to acquire assets, a move which would strengthen the group's capability.

He said the low oil price environment was an opportune moment to undertake acquisitions, partnerships and capital expenditure to strengthen the company's position.

"It is also a good time for us to streamline operations, harness greater integration among our business divisions to consolidate processes for improved cost efficiency,"  Azmi said.

He said the firm was always looking at means to create value as it would make the company more robust to expand overseas.

"We continue to seek opportunities to expand overseas. Operating outside Malaysia offers several advantages including gaining valuable international exposure as well as currency exchange benefits from US dollar-denominated contracts," he said.

Azmi said Thailand, Indonesia, Myanmar and the Gulf region were among exciting markets for Alam Maritim. He also said the group was in talks with counterparts in Brunei and Vietnam for more projects.

At 12.30pm, Alam Maritim shares rose 0.5 sen or 0.9% to 59 sen, giving the company a market capitalisation of RM545.46 million.

A total of 279,700 shares changed hands.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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