The contract relates to the US$1.23 billion Shoaiba II
Combined Cycle Power Plant Project in Shoaiba, some 120 km
south of the Red Sea city of Jeddah. It was awarded to
Rotary's joint venture company Petrol Steel Co. Ltd. by South
Korea's Daelim Group, which is the main contractor for the
project. The combined-cycle plant, which is owned by the
Saudi Electricity Co, will have a power capacity of 1,238
megawatt when completed.
The contract will see Rotary building 17 field storage tanks
which will primarily be used to store fuel oil. Work is
scheduled to start in June and is expected to be completed
around the middle of 2013.
Mr Chia Kim Piow, Rotary's Chairman and Managing Director,
said: "This is a strategic win for us and is another
affirmation that our strategy to capitalise on our presence
in Saudi Arabia is bearing fruit. We are hopeful and
optimistic that more opportunities will open to us as we
continue to fortify our presence in Saudi Arabia"
"As we continue to build our reputation and track record in
Saudi Arabia, we are confident that we will be able to
convert more tenders into contracts over time," added Mr
Chia.
Rotary is a leading provider of engineering, procurement,
construction and maintenance services serving the Oil & Gas
and Petrochemical sectors.
It entered the Middle East market in 2006 and gradually made
its presence felt, starting with small projects. It firmly
established itself as a serious player there when it secured
a US$745 million EPC contract to build a refinery tank farm
in Saudi Arabia for Saudi Aramco Total Refining and
Petrochemical Company (SATORP), a joint venture between Saudi
Arabian Oil Company (Saudi Aramco) and Total S.A. (Total),
for its Jubail refinery in 2009. Momentum gathered and the
following year, in 2010, it clinched a contract worth an
estimated US$250 million to build a petroleum storage
facility with a capacity of 1.1 million m3 in the United Arab
Emirates.
Apart from the Middle East, Rotary is also firmly ensconced
in Asian markets, namely, Singapore, Indonesia, Malaysia,
Thailand, China and India.
Indeed, over the last several months, it has chalked up more
than S$100 million worth of contracts, comprising projects in
Singapore as well as the region. Noteworthy projects in
Singapore that Rotary is currently undertaking include the
petrochemical plant on Singapore's Jurong Island that is
owned by Taiwan-based Chang Chun Group and a tankage project
undertaken for Samsung C&T Corporation relating to a power
plant project by GMR Group, which is a
Bangalore-headquartered global infrastructure major with
interests in the airports, energy, highways and urban
infrastructure.
Mr Chia said that Rotary will continue to engage the market
and stay alert to new and interesting business ideas and
opportunities, in Singapore, the region and further afield.
Rotary had said earlier that it was open to take equity
stakes in oil terminals and other potentially viable
projects.
For the nine months ended 30 September 2011, the Group
registered a profit after tax attributable to parent of
S$22.7 million compared to S$37.8 million a year ago, on the
back of revenue of S$401.1 million.
- End -
About Rotary Engineering Limited
(www.rotaryeng.com.sg)
Rotary Engineering Limited (
Rotary Engineering Limited
Equities
ROTE
SG1A43000730
Construction & Engineering
1st Jan change | Capi. | |
---|---|---|
+23.11% | 6.61B | |
+49.29% | 2.63B | |
+32.01% | 1.85B | |
+24.60% | 1.05B | |
+33.02% | 493M | |
+26.30% | 383M | |
+26.96% | 382M | |
+11.63% | 337M | |
+25.35% | 271M |