Logindo Chasing New Oil Clients to Match New Vessels

By : Jakarta Globe | on 8:04 PM April 16, 2014
Category : Business, Corporate News

Jakarta. Logindo Samudramakmur, an offshore support vessel company, is on the lookout for new clients this year to boost business and keep pace with its new fleet acquisitions and to reduce its dependence on one customer.

Eddy Logam, president director of Logindo, told reporters on Wednesday that the company expects to have five new clients this year. So far, Total E&P Indonesie, the local outfit of the French oil and gas giant, contributes 82 percent of Logindo’s contract revenue. Its second-biggest client is state-owned Pertamina Hulu Energi.

He said Logindo has signed a contract with a new client — Premium Oil, a US oil and gas company — to provide a 12,000 horsepower vessel on its exploration in Indonesia early this year.

Eddy said the company needs to add new clients as it increases its stable of larger ships.

“Total E&P mostly works in the Mahakam block which requires smaller boats — 5,000 horsepower vessels. We are increasing the number of larger boats so we need new clients for them,” Eddy said.

In the next two years, as new clients come in, Logindo expects Total’s contribution to be reduced to about 60 percent.

Last year, the company added two new vessels and in February, it has also purchased a new vessel with 8,000 horsepower for $17 million.

Eddy said the company will also soon sign an agreement to purchase another similar vessel also with 8,000 horsepower.

This year, the company plans to spend about $80 million in capital expenditure to purchase five new ships.

Meanwhile, it is in the process of bidding for various offshore oil and gas contracts, the total value of which is $170 million.

Eddy is optimistic that Logindo can win at least 40 percent of them.

Logindo is bidding for worth with Pertamina Hulu Enegi, CNOOC Indonesia and Conoco Phillips, among others.

Eddy said that as the government is currently talking about encouraging gas exploration and production, he believes the company is well placed to benefit from a resurgence.

In the first quarter, Logindo had an estimated $5.7 million in net income, up 62 percent from the same period last year, said Sundap Carulli, finance director at Logindo. Revenue rose by an estimated 50 percent to $18 million.

Logindo raised Rp 356 billion ($31 million) from a first-time share sale in December.

Shares of Logindo fell 2 percent to Rp 3,550 in Jakarta trading on Wednesday, while the main stock measure was little changed.

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