Perdana Petroleum aborts barge acquisition due to poor O&G market
30 Mar 2016, 08:26 pm
main news image

KUALA LUMPUR (March 30): Perdana Petroleum Bhd, which had proposed the acquisition of two barges in June last year, has decided to cancel its order for one of them due to the poor market conditions in the oil and gas (O&G) industry.

The company said it has so far not identified any potential charter contract for the barge, and will have to incur additional operating and finance costs for servicing the loan if it accepted the delivery of the vessel.

"This will put unnecessary strain on the group's balance sheet and cash flows especially if the vessel remains idle for a prolonged period," it added in a filing with Bursa Malaysia today.

Perdana Petroleum did not mention if it was reconsidering the acquisition of the second vessel as well.

The company said it has written off RM36.1 million being the 20% deposit for the first vessel, in the financial statement for the year ended Dec 31, 2015.

"The board do not foresee any financial impact in 2016," it added.

Perdana Petrolem had proposed the acquisition of the two units of 500-men accommodation work barges from Nam Cheong International Ltd for US$84 million (RM330 million).

In its announcement then, it said the decision was in line with its expansion plan in providing marine support services to offshore O&G facilities.

The company was targeting a 20% increase in revenue over the next two years following the acquisition of the new vessels.

 

Print
Text Size
Share