Swiber secures US$102mn orders

The group maintains strong order book visibility despite volatile market condition.

Swiber Holdings Limited (“Swiber”), a world class integrated construction and support services provider to the offshore industry, announced that it has secured yet two more order wins totaling approximately US$102.0 million for offshore construction projects involving pipeline and subsea installation works in Southeast Asia. Both projects are scheduled to commence immediately, with one project to be completed by 4QFY2011 and the other to be completed by 2QFY2013.

One of the contracts is from a new customer and another is a repeat order from an existing customer, both of which are major oil companies in Southeast Asia. These contracts wins bear testimony to the Group’s strong asset and resource capabilities to meet the stringent requirements of its customers, who are mainly oil majors.

Commented Mr. Francis Wong, Group Chief Executive Officer and President of Swiber, “We are deeply encouraged by yet two more order wins notwithstanding the current market condition. While we continue to receive repeat orders from existing clients, we are also securing contract wins from new customers, signaling an endorsement of our consistently excellent service and timely deliveries.

“Our order book, which is well-diversified geographically, allows us to capture the varying peak seasonal demand for each region. This helps us to maximise the utilisation of our vessels, and allows us to spread our costs over a wider base of contracts, thus enhancing our cost competitiveness.

“Southeast Asia offers exciting opportunities for more contract wins given that Q4 is traditionally a strong quarter for awards of contracts in this geographic area.

“With our order book exceeding US$1.0 billion, we now have good business visibility which allows us to better plan our vessel deployment and chart our plan to weather the current turmoil. All these will translate into better cost efficiency for us and our clients.”

The most recent contract wins across the Group’s integrated units were achieved in a rapid pace following its single largest contract win this year worth approximately US$155.0 million for an EPIC pipeline project in South Asia less than a month ago. It also attests to Swiber’s industry reputation for its capabilities in tackling challenging offshore operations and providing topnotch solutions to leading oil majors, according to a Swiber report.

Swiber has secured to date, new contract wins amounting to US$758.0 million in 2011 from oil and gas majors for work in Asia and the Middle East.