PERISAI Petroleum Teknologi Bhd (Perisai), which launched its first jack-up drilling rig, here, yesterday, is confident of returning to the black by year-end, backed by the new business segment.
Perisai posted a net loss of RM2.98 million in the first quarter ended March 31 on the back of lower revenue, which declined 65 per cent to RM10.87 million from RM31.69 million a year ago.
This was mainly due to the absence of jobs for its mobile offshore production unit (MOPU), Rubicone, and its derrrick pipe-lay barge, Enterprise 3 (E3), which contributed about 70 per cent to the company’s revenue last year.
Its managing director Izzet Ishak said the jack-up drilling rig business, which the company has ventured into this year, is expected to be the oil and gas (O&G) services provider’s biggest revenue contributor at 60 per cent by 2016.
He said Perisai is expanding the fleet size of its jack-up drilling rig by adding two more rigs, which are currently under construction and slated for completion in 2015 and 2016 respectively.
“With the first rig commencing operation in August, we hope that things will turn around in the second half of this year as this rig contributes to the company’s revenue,” he said.
“However, it will not be as good as last year due to the poor results of the first quarter,” Izzet told reporters after launching the Perisai Pacific 101.
Perisai had secured a US$158 million (RM502.44 million) contract from Petronas Carigali Sdn Bhd for the provision of Perisai Pacific 101 for a duration of three years. It is expected to contribute about 40 per cent to the company’s topline this year.
The rig is designed and constructed to drill high-pressure and high-temperature wells as deep as 30,000 feet in water depths of up to 400 feet, with a hook load capacity of 1.5 million pounds.
Perisai has targeted to allocate some RM2 billion in capital expenditure over three years to finance the construction of the three drilling rigs, which will be raised from both internal and external funds.
Izzet said the two new rigs will be equipped with more advanced features and cost about RM700 million each. The company has paid 20 per cent in downpayment for the construction of its second rig, the Perisai 102, with the remaining 80 per cent will be satisfied via external borrowings.
“We believe this new business segment will synergise with our existing business divisions and lead to greater value for our shareholders,” said Izzet.
Moving forward, Perisai will maintain its focus on the jack-up drilling rig business as well as the production division, which comprises the floating, production, supply and offloading and MOPU.
It is also involved in the offshore support vessels business with a small contribution to the company’s earnings.
“We are constantly looking for new jobs for our MOPU business and expecting to secure new job contracts in the fourth quarter of the year as we now have four job prospects,” added Izzet.
On its plan to exit the pipe-lay barge business, Izzet said the company targets to do so within three years by selling its entire 51 per cent stake in E3 to Singapore-listed Ezra Holdings Ltd, which currently owns 49 per cent stake in the asset.
“For now, we will still look for new jobs for E3, but within three years, we plan to exit the business,” said Izzet, adding that the move is to make way for the company’s focus in the drilling and O&G production businesses.
