Published October 31, 2009

Rotary wins $20m contracts from Shell

By VEN SREENIVASAN

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ROTARY Engineering, which recently won contracts worth some $1.1 billion in Saudi Arabia, yesterday said that it had secured two new contracts worth a total of $20 million from Shell Eastern Petroleum.

It said that the contract for revamp works at one of the process units on Pulau Bukom and for maintenance works at Shell Chemical's plants on Jurong Island would have no impact on the current year's financial performance.

Rotary's most notable recent win was a US$745 million engineering, procurement and construction (EPC) contract, awarded by Saudi Aramco Total Refining and Petrochemical Company, to build a refinery tank farm at Jubail, Saudi Arabia. It is also working on two contracts totalling $36 million from Neste Oil Singapore Pte Ltd for electrical and instrumentation works at Neste's $1.2 billion NExBTL Renewable Diesel Plant in Tuas, among others.

For the six months ended June 30, Rotary posted record revenue gains of $296.1 million and a net profit of $17.4 million. Its order book then stood at a record $1.43 billion, with projects lasting up to the end of 2012.

Chia Kim Piow, chairman and managing director, said: 'Our relationship with Shell goes back many years and we are thrilled to have this opportunity to be of service to them again. It's encouraging and gratifying when clients return to us, and we will do our utmost to ensure that we continue to deliver high-quality work on time and on budget so that their confidence in us continues to be strong.'

Mr Chia added that the three-year maintenance deal was an integral part of the suite of Rotary's services. 'This sector still holds opportunities for us. When we do a greenfield project, for example, it often makes sense to continue to engage us for the follow-up maintenance work.'