Boustead lands S$100 million oil and gas contract in Europe

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Boustead Singapore’s wholly owned subsidiary, Boustead International Heaters (BIH) has landed a significant contract valued from the oil and gas sector for around S$100 million, the Singapore-listed company said in a filing to SGX Thursday.

The contract is for the design, engineering and supply of waste-heat recovery units (WHRUs) for a major energy infrastructure development in Europe, Boustead said.

WHRUs are used in gas processing and hydrogen production as part of the transition to relatively cleaner fuels and renewables, the filing said, adding WHRUs capture energy from turbine exhaust and flue gases generated by high temperature processes, keeping it from the atmosphere. The captured energy is then used by other utilities, reducing plants’ overall energy demand and increasing operational efficiency, the filing said.

“While the global O&G recession appears to have bottomed out, our recent success comes during a time when highly challenging and competitive market environment conditions remain,” Wong Fong Fui, chairman and CEO of Boustead, said in the statement.

“This contract win reflects our client’s confidence in our in-depth domain expertise and established track record to deliver, in addition to our market leadership in the global O&G industries for WHRUs,” he said.

The contract is expected to positively impact profitability for the financial years ending 31 March 2020 and 2021, the filing said.

Wong added that the energy-related infrastructure division has obtained more than S$161 million in new contracts across energy developments in Africa, Asia, Europe and North America, with the division’s orderbook backlog doubling.

The new contract boosted Boustead Group’s orderbook backlog to around S$823 million, including unrecognized project revenue at end-June and the total value of new orders since then, the filing said.

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