It wants to be one of the regionâ€™s leading providers in 5 years
Yinson Holdings Bhd aims to become one of the regionâ€™s leading providers in the marine-related transportation services within the next five years.
Chairman and managing director Lim Han Weng said it would focus on the oil and gas (O&G) sector, as there were not many companies offering such services to the O&G players due to the high entry level and the requirement of skilled staff.
â€œWith less competition, the company will be in a better spot to develop and strengthen our position in the related services,â€ Lim told StarBiz after the company AGM.
He said the companyâ€™s decision to venture into the marine transportation services three years ago was to reduce its dependency in the land transportation sector.
Lim said competition in the land transportation sector had grown intense recently as too many players competing in the same fray.
He said with over 1,000 players in the countryâ€™s haulage sector, profit margin was becoming smaller with many haulage companies willing to offer up to 30% and 40% discount for clients just to be in business.
Lim added there were geographical limitations in the land transportation sector as local service providers usually cover only Malaysia, Singapore and Thailand.
On the other hand, he said there would be demand for the marine related transportation services as long as there were exploration activities in the O&G sector worldwide.
Lim said the company would grow its O&G-related services organically with Vietnam as the launching pad, as the country offered good prospects and opportunities due to booming O&G exploration activities there.
â€œAlthough we are new in this line, we have secured two long-term contracts to provide offshore support vessel services (OSVs) for the O&G activities in Vietnam,â€ he said.
Its wholly-owned subsidiary Yinson Marine Services Sdn Bhd has been awarded the OSVs contracts from PetroVietnam Technical Services Corp, a unit of Vietnam state-owned Vietnam Oil and Gas Group.
The other is to assist and service the operations of Petronas Carigali Vietnam Ltd, in collaboration with Kencana Nautilus Sdn Bhd, a subsidiary of Kencana Petroleum Bhd.
He said it had been approached by few Bursa Malaysia-listed O&G service providers who had shown interest to work together to secure the OSVs contracts in Vietnam.
Lim said with the companyâ€™s gaining trust in Vietnam, it would be looking at expanding its related services to Indonesia and Malaysia as more new O&G exploration activities were expected to take place in both countries in the coming years.
Apart from the O&G related services, its wholly-owned subsidiary Yinson Vietnam Co Ltd now handles port transportation and related activities at Vietnameseâ€™s new port in Hongtou, about 100km from Ho Chi Minh City.
For the financial year ended Jan 31, 2010, Yinson recorded a RM7.39mil net profit on RM470.28mil revenue against RM12.80mil and RM635.99mil respectively in FY09.