EA Technique allots RM142m capex for 2015

KUALA LUMPUR: EA Technique (M) Bhd has allocated a capital expenditure of US$40 million (RM142 million) this year for new projects, said managing director Datuk Abdul Hak Md Amin.

"Once we get the contracts, we will purchase the vessels and there are some jobs to be done onboard the vessels ," he told a press conference after receiving three ISO certifications from the British Standards Institution yesterday.

Hak said the group currently has RM1.3 billion worth of contracts in hand and is bidding for domestic projects worth RM1 billion.

"We hope to secure 50% to 60% of the RM1 billion contract by this year," he said, adding that EA hopes to secure a project in the first quarter this year.

He said there is also a possibility for the group to embark on mergers and acquisitions but said that it is focusing on organic growth at the moment.

The group is also eyeing for better results in 2015 with new vessels coming into operations.

On declining oil prices, Hak reiterated that EA is insulated from the volatility.

"We're a shipping company and we're a service provider. We're insulated against any oil (price) going up and down because the bunkers are paid by clients and they're happy because they pay less bunker costs now.

"For us it doesn't make any difference. Our vessels are on a long-term time-charter for the next few years and some of them are on charter until 2025," he said.

On the outlook of the shipping industry, he said the sector is in a good position now because oil prices have gone down.

"Freight has gone up because there are a lot of movement of ships. Bunker price has dropped quite substantially so shipping companies are making money."

Earlier, EA received three ISO certifications, which are the OHSAS 18001 Occupational Health and Safety Management, ISO 9001 Quality Management and ISO 14001 Environmental Management .