FEDERAL International (2000) announced that its wholly owned subsidiary, Federal Hardware Engineering Co. Pte Ltd. (“FHEC”), secured procurement contracts from customers in Thailand and Malaysia valued at US$11.3 million and letters of intent valued at US$1.8 million from customers in Thailand, Malaysia and Vietnam. KK Koh, CEO of Federal International. NextInsight file photoAn integrated service provider and procurement specialist in the oil and gas, energy, utilities and infrastructure industries, Federal will supply flow control products for deployment at oil and gas (“O&G”) projects’ sites. These contracts are expected to be completed and delivered by November 2020. Mr. Koh Kian Kiong, Executive Chairman and CEO of Federal, said, “Our Group is delighted to once again secure major procurement contracts from a major O&G player in Thailand and Malaysia plus supplying for another major O&G project in Vietnam. Despite weaker oil prices in early 2020, we are hopeful of more similar opportunities to work with. We are grateful for these opportunities to enhance our footprint in the region and to display our procurement capabilities.” |
Despite the ongoing COVID-19 situation, the Group cautiously expects its business operations in Indonesia and China to continue to grow.
Indonesia’s planned investment in its infrastructure sector including power and transportation is expected to provide opportunities for the Group.
The Group will continue to bid for new projects in the region anticipated to come on stream in 2020.
The Group’s trading operation in China has been active since the fourth quarter 2019 in procuring scrubbers for shipyards in China.
Demand for scrubbers has increased due to the implementation of the IMO 2020 which requires shippers to adopt more environmentally-friendly measures to manage their fleets, including reducing the sulfur content in fuels used in their vessels from 1 January 2020.
The Group expects the demand for scrubbers to continue in 2020.
Highlights of FY19 results:
• Gross profit: $14.1 million, which was 37.5% higher than that for FY2018 (FY2018: $10.2 million). Gross profit margin for FY2019 was 22.5% (FY2018: 23.7%) due to the relatively lower margins for trading business in China and Indonesia. • Net profit attributable to shareholders: $2,384,000, a sharp turnaround from the $5,802,000 loss in 2018. |
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