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Stockwatch- Rotary Engineering, 26 December, secures S$126m global EPC contracts

Rotary Engineering secures S$126m global EPC contracts in Thailand

Contracts for process plant off-site tank farm unit project speak of Rotary’s regional capability

SINGAPORE, 26 December 2006 – Mainboard-listed Rotary Engineering Limited (“Rotary”), in collaboration with its Thai unit, Thai Rotary Engineering Ltd. (TREL), has secured global Engineering, Procurement & Construction (EPC) contracts worth S$126million from Map Ta Phut Olefins Co. Ltd. (“MOC”), a joint venture between Siam Cement Group and DOW Chemicals, for the construction of its process plant off-site facility in Map Ta Phut, Rayong Province, Thailand.

Rotary is a leading provider of engineering, procurement, construction and maintenance services supporting the oil-and-gas and petrochemical industry.

This project involves the construction of the process plant off-site tank farm unit consisting of fifteen spherical and atmospheric tanks. These are for the storage and handling of various petrochemical products, as part of the related facility for the New Naphtha Cracker Complex to be built in RIL Industrial Estate in Map Ta Phut area. MOC plant is scheduled to be in operation in 2010.

Said Mr Chia Kim Piow, Rotary’s Chairman and Managing Director at the contract award ceremony: “We are indeed honoured to be entrusted with this prestigious project. This is a recognition of Rotary’s track record in the petroleum and petrochemical storage capabilities to deliver projects of this scale. Rotary has broadened its scope, from building storage terminal for independent terminal operators to building the Offsite and Utilities packages for process plants in the oil and gas industry.”

Rotary Engineering’s biggest contract to date is the S$535million EPC contract to build an oil terminal in Jurong Island for Universal Terminal (S) Pte Ltd. Upon its completion by end 2007, Universal Terminal will be one of the world’s largest independent oil terminals, with 2.3 million cubic metres of storage capacity in 73 custom-built tanks. The Universal Terminal will be the first oil terminal in this region to have its own 12 berths, including two VLCC berths. The terminal will have dedicated inner basin with six berths for coastal and bunker vessels of up to 15,000 DWT, while the outer berths are designed with the flexibility to handle vessels up to 320,000 DWT.

Rotary Engineering turned in a net profit after tax and minority interest of S$16million for its first half ended 30 June 2006, an increase of 395% over the S$3.2million it made in the same period the previous year. Group turnover for the first six months of 2006 stands at S$202million, an increase of 150% over the S$80.7million it achieved in the previous corresponding period

posted by gsg @ 4:33 PM