OVH focusing on S’wak, Sabah for O&G jobs

KUCHING: Ocean Vantage Holdings Bhd (OVH) has zoomed in on Sarawak and Sabah to bid for projects in the oil & gas industry.

The company said it continues to participate in various tenders, both onshore and offshore projects, focusing on East 

Malaysia where most of the upcoming high-profile and high value projects were expected to be unveiled.

“The major oil producers are expected to continue to increase their capex (capital expenditure) due to lack of investment in the past.

“The global oil and gas industry outlook is to remain robust contributed by the global economic conditions and prolonged geopolitical tensions. Besides, the oil and gas supply market is expected to tighten due to the extended production cuts and voluntary cuts by OPEC+ and OPEC respectively,” added OVH as it comments on prospects going forward when releasing its third quarter to Sept 30, 2023 (3Q2023) financial results.

In 3Q2023, OVH group net profit more than doubled to RM5.5 million (3Q2022: RM2.1 million) despite drop in revenue to RM39.4 million (RM45.3 million). Earnings per share rose to 1.31 sen from 0.5 sen.

In the current quarter under review, the group revenue was derived mainly from the supply of manpower segment and engineering, procurement and construction (EPC) and project management segment (RM20.96 million and RM16.45 million respectively).

The remaining revenue of RM1.43 million and RM0.54 million were generated by the supply of materials, tools and equipment segment and drilling rig charter segment respectively. 

OVH said the drop in group revenue by RM5.9 million (13.06%) in 3Q2023 from that of 3Q2022 was recorded across all segments, except drilling rig charter segment.

“The drop in revenue in EPC and project management segment and supply of manpower segment are mainly due to the escalation of materials and manpower costs in BAGSF 2 (Bintulu Additional Gas Sales Facility 2) project and a lower revenue contribution from the catering division and lower recovery cost revenue respectively,” OVH said in its financials.

On a nine-month 2023 period (9M2023), OVH saw its group net profit climbed to about RM12.6 million (9M2022: RM4.9 million) in line with increased in revenue to RM135.6 million (RM103.8 million).

The EPC and project management segment contributed RM72.1 million, manpower supply segment RM58 million, supply of materials, tools and equipment segment RM4.96 million and drilling rig charter segment RM0.58 million.

Going forward, OVH said the group remains focussed in pursuing its key long-term strategies to ensure the business model adopted is able to generate a sustainable revenue stream over time.

Therefore, it said the group shall continue its investment in human capital development by multitasking its workforce to ensure it remains efficient and competitive.