CFA Society Singapore
SINGAPORE (Oct 1): Federal International (2000) says it secured five contracts amounting to a total of US$58.4 million ($80 million), the largest being a US$51.3 million five-year charter hire contract for Federal II, a floating, storage and offloading (FSO) vessel owned by the group’s subsidiary, Eastern Jason Fabrication Services (EJFS).
This comes after the group’s previous charter agreement between China National Offshore Oil Corporation (CNOOC) and PT Eastern Jason PTEJ – which secured the five-year charter hire contract and is 30%-owned by EJFS – expired on Sept 5.
Under the new contract for Federal II which commenced on Sept 6, the FSO vessel will continue to be deployed at the Widuri Field in Indonesia.
Another US$4.5 million contract will see the group’s subsidiary Federal Fire Engineering design, supply, install, test and commission fire suppression systems for 52 electrical substations for a government agency in Singapore.
These works are scheduled for eight months from Sept 2018, and are expected to complete by May next year.
The remaining three procurement supply contracts are won by PT Fedsin Frekayasa Pratama (FRP), a wholly-owned subsidiary of Federal Hardware Engineering (FHE). They amount to a total of US$2.4 million and involve supplying materials for the foundation works of toll road project works in Indonesia.
Koh Kian Kong, executive chairman and CEO of Federal, says the latest series of new order wins demonstrates the group’s resilience and capability to secure contracts despite intense competition and tough operating conditions in the industry.
“We will continue to build up our order book while keeping a close watch on managing our capital expenditures, working capital needs and other operating costs. We will strive hard to maintain our prudent approach in assessing suitable contracts to work on in order to be responsible to our shareholders and to deliver greater shareholder value in the long run,” says Koh.
Shares in Federal closed flat at 26 cents on Friday.