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EASTERN Pacific Industrial Corp Bhd (EPIC) (8265), an oil and gas support services provider, plans to invest up to RM100 million this year to expand its facilities and business in Kemaman.
The company, whose major shareholder is the Terengganu state government, plans to expand facilities at its Kemaman Supply Base (KSB) and Kemaman Port, which it bought in 2006.
"We are looking towards expanding our facilities, including building warehouses, offices, rigs, and even increasing our land bank at KSB and Kemaman Port", managing director and chief executive officer Ramli Shahul Hameed said at a briefing to analysts and the media in Kuala Lumpur yesterday.
KSB hosts about 300 companies that support the oil and gas industry with services like fabrication, engineering works, manufacturing and assembly. EPIC has about RM70 million in cash to fund some of the projects to be carried out this year.
"But the amount of allocation budgeted may also change. We may require more funds. We hope that we will not have to spend that much", he said.
The company may also maintain its profits this year, despite a tougher business condition.
"We think in the first quarter of this year, we can match or even better our performance and hope to maintain profit by the end of 2009", he said.
EPIC made a turnover of RM245.37 million for the year to December 31 2008, a 40 per cent jump from 2007.
However, net profit was RM44.9 million, slightly lower than RM47.6 million made in 2007.
Its fabrication subsidiary, EPIC Mushtari Engineering, has also bid for more work in Malaysia and Brunei.
"Currently our order books stand at about RM50 million. For the first time this year, we have submitted our bid for a project in Brunei through our subsidiary EPIC Mushtari. The company and its partner is bidding for a contract from Shell Brunei, which is worth RM30 million", he said.
Locally, EPIC Mushtari is bidding for projects from Hess Corp and ExxonMobil, valued at between RM80 million and RM100 million.
"When our five-year expansion plan is in place, we expect to double our revenue and profit by then", he said.
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