Saudi Arabia’s share in total sales revenues of Bahrain’s Asry climbed significantly this year with rig repairs contributing an overwhelming portion of Saudi sales, the shipyard’s CEO has said.

“The contribution to total sales for 2014 (up to 30 June) is approximately 46 per cent, which is a significant amount, and reflects the importance of the geographical area to Asry’s business. Compared to the same period of the previous year, which was approximately 18 per cent, there has been a large rise. This is predominantly due to the offshore services division which is largely Saudi-based revenue,” said Nils Kristian Berge.

“Of all of Asry’s Saudi Arabian business so far this year (until 30 June, 2014), 73 per cent came from the Offshore Services division,” he added. The company has not yet announced its H1 2014 results. In 2013, revenues grew to $199 million, up 12.1 per cent from 2012.

The major rig jobs currently being carried out, and which are large contributors to the high percentage, are three of Saudi Aramco’s jack ups: ARB 1 is in for leg guide repairs, while ARB 2 and Arabiyah 3 are both undergoing five-year surveys. 2014 has proved a solid year so far for Offshore work, with six rigs currently in for repair in total, including Nabors Rig 655 undergoing minor repairs, as is Shelf’s High Island 7, while Focus Energy’s Jupiter 1 has completed Phase One of her maintenance plans.

Berge also provided some insight into Asry’s Saudi market business with regards to ship repairs, refurbishments and conversions.

Berge: Saudi Aramco is the backbone of marine repair optimism

The newly-titled New Construction & Engineering division has been growing its portfolio of projects since it launched last year, and has had the opportunity to work on increasingly technical and specialised scopes. In the past year, Asry has carried out conversions on Zamil 63, Zamil 64 and Zamil 502. All of them were converted from anchor handling tug cum supply vessels to either ROV/dive support vessels or commissary supply vessels. The entire engineering requirements on these ships were carried out by Asry Engineering. This included all hull, machinery, electrical and stability drawings and computations. Asry Engineering took responsibility for approval by classification societies ABS and BV for all the work done and thus provided a one-shop solution.

On the construction side, Asry’s main clientele belongs to AOS. Asry is working closely with Zamil Offshore to offer them shallow water anchor-handling vessels and with port terminal operators such as Atco for harbour tugs and Red sea Gateway terminal for container barges.

An engineering highlight was the completion of the pre-installation engineering of a large crane for fitment on Rimthan 2, based on which Asry has been awarded detailed engineering for installation of the crane.

Discussing Asry’s business focus for the Saudi market for the next three years and the expertise it will highlight to bolster its business there, Berge said: “The number of rigs in Saudi Arabia is increasing, and Asry has already built a strong reputation amongst the major rig owners and operators. Therefore by creating a local presence, there will be greater opportunity to capitalise on the growing market potential.”

About growth prospects, Berge said “the backbone of marine repair optimism in Saudi is naturally Saudi Aramco with which Asry has been working for decades.”

“They are showing no signs of decreasing their growth activities, and combined with a gradually recovering global market, the outlook for business growth in the kingdom is good. Development of Jubail Industrial City and expansion of Dammam port are going to increase the number of LPG’s, chemical tankers and container carriers trading in the region.

“Asry is targeting to convert this increased traffic into potential business opportunities if those vessels are due for dry-docking.

“Asry also works with other major marine players in the country such as Zamil, who are also showing signs of optimism. Asry is investing in that confidence with the new office, greater sales attention, and diversification strategies such as the Navy, Defence & Industrial Projects department.”

Berge noted that since opening Asry’s representative office in Al Khobar in Q1 of this year, Asry’s Saudi interests have steadily been on the rise. “Having recognised the rise in Saudi rig business, particularly land rigs, the kingdom’s market has become a strategic priority. Asry also formed a new department – the Navy, Defence & Industrial Projects Department – which already has a foothold in the defence industry’s marine repair needs in Saudi Arabia. Our presence throughout the kingdom has also increased with participation in exhibitions and conferences, such as the Saudi Maritime Congress, which recently took place,”  he added.