Despite the ongoing tensions in the Middle East, Keyfield International Bhd, an oil and gas services firm, has stated that its work orders remain unaffected as its vessels primarily operate in Southeast Asia. “For now, all our revenue is derived from Malaysia, and some of it from the joint development area near Thailand. For now, I think the geopolitical risk in the Middle East does not have any direct impact on us because we operate 100% in this region”, Keyfield group chief executive officer Datuk Darren Kee Chit Huei said at a press conference.
“In terms of direct work, there is no cancellation of work orders because all our clients, including Petroliam Nasional Bhd (Petronas) and Shell, run in this region — in Sabah, Sarawak, in Kemaman, Terengganu, as well as in the joint development area near Kelantan and Songkhla in Thailand", he added.
Keyfield, specializing in the chartering of accommodation vessels, holds an optimistic outlook on its prospects. The company remains particularly bullish on the future of accommodation vessels, driven by a shortage of suitable vessels and robust issuance of new work orders from key oil companies like Petronas and other petroleum arrangement contractors.
The group is looking for more third-party vessels or acquiring vessels to meet the growing demand. On top of that, Kee said the current high oil price is benefiting the group, given that the upward trajectory of oil prices will drive increased offshore activities. Just this month, the Brent crude oil price hit above the US$90 (RM430.52) barrel mark for the first time since October last year, as the conflict in the Middle East showed signs of escalating. Year to date, oil prices have gained 14%.
Keyfield possesses a fleet of 11 accommodation vessels and additionally charters third-party vessels. Among its owned vessels, three are under long-term contracts (exceeding one year), while the rest are chartered on a spot basis, with durations spanning from two to 10 months.
In an exchange filing, Keyfield reported that its net profit for the financial year ending on December 31, 2023, surged by 72.41% to RM22.12 million compared to RM12.83 million in the corresponding period of the previous year. This growth was attributed to increased vessel utilization and charter rates. Revenue also experienced substantial growth, rising by 76.82% year-on-year to RM119.53 million from RM67.6 million. For the entire fiscal year 2023, Keyfield's net profit more than doubled, reaching RM105.48 million from RM48.88 million, while revenue surged by 82.24% to RM430.45 million from RM236.2 million.