Topaz Fabrication and Construction Company says there are several ongoing projects at its Abu Dhabi and Fujairah yards.

Notably, the Abu Dhabi facility is in the later stages of fabricating a 12,000-tonne Mobile Offshore Production Unit (Mopu) for a reputed European client which will operate in the North Sea. This multi-million-dollar contract is scheduled to be completed by late summer.
In 2008, Topaz delivered an LNG loading module for a major GCC-project. The project included construction and loadout for a major regional LNG offshore facilities project. “Topaz executed several technically sophisticated oil and gas projects during 2008, involving FPSO modules, LNG loading modules, jackets and topsides,” said Fazel A Fazelbhoy, CEO of Topaz. It also completed the construction of an oil and storage terminal of 60,000 cu m capacity and four large storage tanks.  “These projects reflect our capability to take on and successfully execute complex and large-scale engineering assignments through our experienced management and engineering team and Topaz’s large fabrication facilities,” he said.
To facilitate load outs Topaz is building a 100 m jetty in Abu Dhabi’s Musaffah Industrial Area. The jetty will have a point load capacity of 12,000 tonnes.
Some of the projects undertaken by Topaz in Fujairah include the fabrication and installation of lift dock structures, electrical and instrumentation work and jetty piping and trestle structural work.
In 2008, Topaz generated revenues of more than $400 million and EBITDA in excess of $110 million. “This year we are undergoing a realignment that will see the company grow even stronger and allow us to be recognised worldwide as a best-in-class service provider to blue-chip multinationals,” commented the CEO.
With its operational headquarters in Dubai, UAE, Topaz will in 2009 operate under two primary business divisions – Topaz Marine and Topaz Engineering. Topaz Marine, the offshore support vessel division comprises Nico Middle East, Doha Marine Services, Topaz Saudi Arabia, BUE Caspian, BUE Kazakhstan and BUE Turkmenistan. Topaz Engineering comprises Adyard (Abu Dhabi) and Nico International.
Topaz Engineering offers services in four business verticals, namely fabrication and construction, marine repair, ship building and maintenance services.
Operating out of facilities in Abu Dhabi and Fujairah, Topaz Fabrication and Construction is engaged in offshore and onshore construction across the UAE and for global clients in the oil and gas, utilities and ports industries. Its fabricated structures are destined for all points of the offshore world including the North Sea, Caspian Sea and the Middle East.
Speaking about the challenges faced by the company, Fazelbhoy said the business environment for any company was challenging within the context of the global financial downturn. However, following a successful 2008, the company entered 2009 with a strong order book and a portfolio of long-term contracts. In comparison with the Marine Division where many contracts last for five years and more, Topaz Engineering would see shorter visibility in the order book. The yards, however, had an optimum size and were strategically positioned.
Fazelbhoy noted that Topaz’s take on acquisitions was different from many of its competitors. Undeterred by the present high cost of finance, the company was considering acquisition prospects that presented themselves at attractive valuations. At the peak of the market, acquisitions were easily financed at relatively low rates but at a high asset price. Conversely, today credit was tight and asset valuations low. Provided the company had a solid balance sheet, acquiring during weak market conditions could be the right way to go. An expensive asset on the balance sheet always remained expensive, however an asset acquired at a low cost could always be refinanced when the immediate credit crunch was over and terms of borrowing improved.
“Acquisitions at Topaz are always subject to rigorous stress testing, and now so more than ever. Most importantly, no acquisitions are considered that would in any way place stress on the company’s key ratios and gearing,” he concluded.