Published June 16, 2009

M'sian cranemaker eyes Sabah, Sarawak markets

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(KUALA LUMPUR) Cranemaker Handal Resources Bhd, which is en route to a listing on Bursa Malaysia next month, plans to expand into Sabah and Sarawak's oil and gas industry, after its success in Terengganu, reports Malaysia's Business Times.

Oil base: Handal's track record includes structural inspections, crane removal and reconditioning

The company is also mulling entry into the region, with an eye on Thailand, Vietnam, Myanmar, China and Indonesia. Founder and executive chairman Mohsin Abdul Halim said that opportunities within the oil and gas industry remain positive as oil majors involved in exploration activity continue to set up more oil platforms.

'We are currently a strong niche player in Terengganu where all the 150 offshore cranes are under our charge. We are planning entry into the Sabah and Sarawak markets and then the region.'

Handal has established communication channels with potential business partners in Thailand, Vietnam, Myanmar, China and Indonesia.

The bumiputra-owned company is the incumbent and sole licence holder to maintain and service 150 offshore cranes owned by Petronas Carigali, ExxonMobil, Talisman, Petrofac, MISC Bhd and Sarawak Shell Bhd until 2013. 'The offshore cranes (defined as over 200 km from shore) in Terengganu are our bread and butter, so we have the potential to service over 150 cranes owned by all the oil majors,' said Mr Mohsin.

Handal's track record includes on-site structural inspections, crane removal and crane reconditioning. Handal managing director and chief executive officer Mallek Rizal Mohsin said that servicing a crane costs RM1.8 million (S$744,000), while a new one costs RM4 million.

Of the 150 offshore cranes, it has reconditioned and periodically inspected 57. It has also manufactured 14 new offshore pedestal cranes as well as lease them out.

Handal is expecting double-digit revenue growth for the current fiscal year ending Dec 31, 2009, riding on the world's recession-proof oil and gas industry.

Last year, it posted a net profit of RM9.2 million on revenue of RM60 million. Handal's initial public offering (IPO) is the second this year after Samchem Holdings Bhd last month. It is offering 18.5 million new shares, of which a third will be offered to the public. The company will be launching its prospectus on June 29 and its shares are due to be listed on the second board at end-July.