Dyna-Mac Holdings, a Singapore-based provider of detailed engineering, fabrication and construction of offshore floating production storage offloading (FPSO) and floating storage offloading (FSO) topside modules as well as modular units for onshore and other subsea products for the oil and gas industry, reported that it has secured an $8.5 million (SGD 12 million) contract from an established and reputable first time new customer, a multi-national corporation (MNC) based in Singapore, for the construction of 13 units of Pre-Assembled Rack (PAR), 2 units of Pre-Assembled Units (PAU) and 1 unit of Pre-Assembled Structure (PAS) for their Singapore project.
Dyna-Mac’s contract includes the supply and installation of structural steel, piping installation, mechanical/equipment installation, electrical and instrument works, insulation, painting/coating and fireproofing works and pre-commissioning. The project’s modular units are scheduled to be delivered progressively to the owner with the last unit loaded out by May 2016.
Desmond Lim, CEO of Dyna-Mac said “We are delighted to be awarded this significant contract in Singapore. With our vast experience and proven track record in detailed engineering, procurement, construction and pre-commissioning of topside modules and having delivered 243 modules to-date, we are confident of delivering these modular units and meeting our customer’s stringent requirements.”
The project will be undertaken at Dyna-Mac’s yard in Tanjung Kupang, Johor, Malaysia. On completion, the modular units will be transported by owner to their project site located in Singapore.
With this new contract, the net order book as at to-date stands at $217.2 (SGD 305 million). This includes an adjustment to the work scope for the Zadco project (press release dated Nov. 1, 2013) and an increase in the number of modules for the Kraken project (announcement dated May 12, 2014).
The above is not expected to have any material impact on the net tangible assets and earnings per share of Dyna-Mac for the current financial year.