Beng Kuang Marine (SGX:BEZ
) announced that its wholly owned subsidiary, Asian Sealand Offshore and Marine (ASOM), has secured two new purchase orders with an aggregate value of approximately US$28.6 million.
Both purchase orders were related to FPSO life extension activities for two FPSOs currently operating in West Africa.
Beng Kuang explains that the purchase orders convert a significant portion of the advanced-stage workload previously disclosed into secured order book.
“In the recent contract update, ASOM reported approximately US$18 million of confirmed order book and a further pipeline of advanced-stage lifecycle work scopes awaiting formal purchase order issuance,” the company adds.
“ASOM’s embedded resident contractor model across multiple FPSOs continues to position the Group well to participate in recurring lifecycle, maintenance and life extension activities throughout the operating life of offshore production assets, reinforcing ASOM’s position as the Group’s core earnings engine under BKM 2.0,” says Yong Jiunn Run, CEO of Beng Kuang.
Beng Kuang expects these purchase orders to contribute positively to its financial performance over the duration of the contracts, barring unforeseen circumstances.
See also: Serial Achieva wins follow-on contract worth US$14.1 mil
Shares of Beng Kuang closed 1.5 cents lower, or 2.97% down at 49 cents on June 4.
