Epic Targets Higher FY2025 Revenue Following New Petronas Contracts -- CEO

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, March 17 (Bernama) -- Eastern Pacific Industrial Corporation Bhd (Epic) is targeting a higher revenue of RM470 million for the financial year 2025 (FY2025), following its strong FY2024 performance that saw revenue reaching RM403.8 million, the highest in the company’s history.

Group chief executive officer (CEO) Muhtar Suhaili said that the company’s additional revenue this year will be contributed by its new subsidiary, Rahar Niaga Sdn Bhd (RNSB), as well as through new contracts obtained, particularly from Petroliam Nasional Bhd (Petronas).

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“Epic, through its subsidiaries, is bidding for several more projects with Petronas related to oil and gas in Peninsular Malaysia and Sabah. We hope to secure additional contracts to continue driving the company’s growth,” he told Bernama.

Established on Jan 17, 1981, Epic is a Terengganu state government-linked company (GLC) under the Terengganu Inc Group, operating as an integrated oil and gas service provider for upstream and downstream value chains.

Its core business includes supply base and support services for the offshore oil and gas industry, as well as port management, marine services, engineering, maintenance services, and renewable energy.

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Muhtar said that the company’s FY2024 revenue was mainly contributed by three main clusters, comprising supply base and support (RM214 million or 53 per cent); oil, gas, and renewable energy (RM99 million or 25 per cent); and port management and marine services (RM91 million or 22 per cent).

Performance in 2024

Muhtar highlighted that the company secured important contracts from Petronas for maintenance, construction, and modification services (MCM), as well as hook-up and commissioning (HUC) for Package A2 (Peninsular Malaysia Assets - Gas), and was appointed as a panel contractor for construction and modification works (CMW) for downstream units across the East Coast, West Coast, and Southern regions of Peninsular Malaysia.

“Additionally, the board of directors has fundamentally agreed to expand our business not only in Peninsular Malaysia but also to Sabah and Sarawak.

“For Sabah, we recently signed a cooperation agreement with Begas Energy Sdn Bhd for onshore maintenance, construction, and modification services (ONMCM), and we are also bidding for several related projects.

“In Sarawak, the company is in the process of seeking a strategic business partner. We are in discussions with several potential companies to collaborate in oil and gas activities, as the state is known to be one of the key states in the oil and gas industry,” he said.

Regarding cooperation with companies in Brunei Darussalam, Muhtar stated that in November 2024, Epic signed a letter of intent (LOI) with Qaswa Holdings Sdn Bhd, which is part of Brunei’s Adinin Group, specifically involving Brunei’s first integrated marine maintenance yard and decommissioning yard.

“This LOI is currently undergoing due diligence as we finalise the terms for acquiring a stake in the company. We aim to finalise the partnership terms in Brunei by the middle of this year,” he said.

In response to why Epic chose to collaborate with a company in Brunei and whether it will seek partnerships with other countries in the future, Muhtar said the main reason for choosing Brunei is that it is one of the countries where gross domestic product (GDP) mainly comes from the oil and gas industry.

“Moreover, in terms of location, Malaysia and Brunei are quite close to each other, which aligns well, especially in the spirit of ASEAN. For other countries, we are also exploring potential opportunities and have had initial discussions with several countries,” he added.

Epic optimistic about overseas expansion

He emphasised that Epic is serious about expanding its business internationally but will proceed cautiously.

“When involved in overseas investments, we want to ensure that it truly generates income and profit returns for the company. Epic has been around for 44 years this year, and I believe it’s the right time for us to expand our business,” he said.

Muhtar said the company currently has 11 subsidiaries and aims to secure more projects in the future while enhancing the quality of services for existing businesses.

“Among the major projects we are currently undertaking is the (Kemaman) port expansion project (in Terengganu). This is a mega project where we currently have a capacity of about seven million tonnes per year, and in the coming years, we will install four more cranes.

“In the following year, 2027, when all these cranes are installed, the port capacity will increase to 12 million tonnes per year, without expanding the port, just enhancing the facilities and capacity at the existing docks,” he said, adding that the port expansion project is expected to be completed by 2030.

Muhtar also highlighted the East Coast Rail Link’s (ECRL) connection to Kemaman Port, which is expected to be completed in 2027, and when the port expansion is finished by 2030, the port capacity will increase to 29 million metric tons per year.

“At Kemaman Port, we currently do not have container cargo services. Therefore, part of the strategy for port expansion and service development is to establish container-related business here.

“We have been and are still in discussions with a major port operator in Malaysia. A memorandum of understanding (MOU) was signed last February, and further discussions regarding the terms and conditions are ongoing between both parties,” he added.

-- BERNAMA