KUALA LUMPUR (May 21): Offshore support vessel (OSV) operator Perdana Petroleum Bhd (KL:PERDANA) is exploring financing plans for its fleet renewal, as the group nears the 20-year limit for five vessels in three years.
Managing director Jamalludin Obeng said the group is currently finalising its fleet expansion plan and intends to invest in newbuilds rather than second-hand vessels to ensure the longevity of its assets.
“Our focus is to invest in newbuilds because second-hand vessels in the market are often over 10 years old — we want assets that can last another 20 years and be part of our ecosystem," he told The Edge after the group’s 29th annual general meeting on Wednesday.
“We haven’t made any decision yet, but we are still in the process of finalising our plan. Once the time comes, we will make the due announcement,” he said.
Under Petronas’ current tender requirements, the age limit for OSVs is 20 years, following an extension in 2022, from 15 years previously.
At end-March, the group cash and bank balances totalled RM161.41 million. It is in a net cash position, with total borrowings of RM13.71 million.
Each vessel is estimated to cost between US$14 million (RM60.09 million) and US$16 million. It takes between 15 to 18 months to build one vessel. This is the lead time required to purchase a new ship to replace the old one when it becomes obsolete.
Out of Perdana Petroleum’s 14 vessels, five anchor handling tug supply (AHTS) vessels will reach 20 years of age by 2028, two by 2029, as well as one other AHTS and one workboat by 2030.
Its five accommodation work barges are relatively newer, built between 2013 and 2014.
Mulls maiden dividend amid stronger balance sheet
With the net cash position and following three consecutive years of profitability, Perdana Petroleum is now considering a potential dividend payout, although no decision has been made yet, according to Jamalludin.
“Dividend is something we are working on — it’s important to us, and also to the many shareholders within the company,” Jamalludin said, adding that discussions are still ongoing and no specific payout ratio has been proposed.
The group last paid a dividend in FY2014, amounting to two sen per share. According to its 2024 annual report, dividend distribution will be considered once a stable and sustainable profit trend is firmly established.
Its largest shareholder is Dayang Enterprise Holdings Bhd (KL:DAYANG), which holds a 63.42% stake in the group.