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The Edge - 13 April 2009
EPIC To Take On Larger Fabrication Jobs
Lim Shie-Lynn
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Ramli. Photo by Chu Juck Seng
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KUALA LUMPUR: Eastern Pacific Industrial Corporation Bhd (EPIC) plans to boost its fabrication business and will expand the development of available land at Pulau Kuching to carry out larger-scale fabrication works, its managing director and chief executive Ramli Shahul Hameed said.
Plans are underway to develop some 24.2ha at Pulau Kuching, near its Kemaman Supply Base (KSB) and Kemaman Port, where EPIC’s fabrication arm, EPIC Mushtari Engineering Sdn Bhd, would be able to take on bigger jobs, Ramli told The Edge Financial Daily.
Currently, its fabrication yards at Telok Kalong and KSB can only handle minor fabrication works.
He also said Pulau Kuching was a prime location for carrying out large-scale fabrication works as the land was on the seafront, providing greater accessibility.
“In the east coast, there is no other major company carrying out large-scale fabrication works. So with our plans to expand fabrication yards, EPIC Mushtari would have the potential to be a bigger player in the fabrication business,” Ramli said.
“Fabrication jobs handled by EPIC Mushtari are mainly minor jobs. However, once the Pulau Kuching area is fully developed, our fabrication arm would have the potential to secure major jobs from Petronas,” he said.
EPIC Mushtari recently announced that it was eyeing minor fabrication jobs in Malaysia and Brunei, where it is bidding for a contract from Shell Brunei worth RM30 million. For local jobs, it has place bids for projects from Carigali Hess and ExxonMobil. Its current order book stands at RM50 million.
EPIC Mushtari recently terminated plans with another oil and gas firm Offshore CONSTRUCTION & Engineering Sdn Bhd to form a fabrication joint-venture firm Terengganu Fabricators Sdn Bhd.
On the matter, Ramli said: “I believe EPIC has the potential to expand the fabrication business on our own. Also there were certain conditions not met by the other firm, and we decided not to continue the JV.”
In FY08, EPIC posted a net profit of RM44.9 million compared with RM47.6 million previously while revenue jumped 40% to RM245.37 million. The company targets to maintain earnings this year, despite tough business conditions.
EPIC group finance and accounts senior manager Ahmad Mohd Yunus recently said while the firm may see a slight drop in revenue in FY09 given the financial malaise that had spread around the world, profits would be maintained as “the company has cleaned up our books and we would not be making any more provisions”.