KUALA LUMPUR, Sept 2 — Kencana Petroleum Bhd’s revenue is expected to increase by 10 per cent, driven by its newly secured contracts, OSK Research said today.
The group’s subsidiary, Kencana Torsco, yesterday won two construction projects to build a super structure and a sub-structure of a manufacturing plant for Sunpower Malaysia Manufacturing Sdn Bhd worth RM134.5 million.
The group also recently secured RM50.5 million worth of projects from India for the construction of jackets for an offshore process platform. All the projects are expected to be completed by the first quarter of next year. OSK said although individually the contracts seemed to be small in value, securing new contracts frequently would help to keep Kencana’s yard busy.
It also believed more new projects would come in from the fourth quarter of this year as oil majors need to spend so that their actual expenditure would be not too far off from their budgeted expenditure.
“We understand from our sources that established oil majors like Shell, ExxonMobil, Chevron and BP have indicated that they may maintain their 2009 capital expenditure spending close to that of 2008.
“ Therefore, we believe it would be a matter of time up to the first half of 2010 for the oil majors to spend their targeted expenditure to ensure consistent future contribution for themselves in the years to come,” it added. — Bernama
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