Singapore-listed Dyna-Mac has won an order to build two upper hull sections of an offshore vessel.
Dyna-Mac said Tuesday that the order, from an unnamed repeat client, was valued at S$6.3 million.
Under the terms of the contract, Dyna-Mac’s scope of work includes structural fabrication and erection, piping fabrication and installation, electrical and instrumentation, mechanical installation and painting works.
The company did not provide details on the type of vessel, apart from saying it is an offshore vessel.
This project is expected to start in the second quarter of 2020, and is expected to complete by the first quarter of 2021. The works will be carried out in Dyna-Mac's Main Yard at 45 Gul Road, Singapore.
In a separate statement, responding to a query by SGX regarding the company's ability to continue as a going concern, Dyna-Mac said it expects that new orders secured and potential new orders will generate adequate cash flows to repay its debt obligations as and when they fall due within
the next twelve months from the date of this report.
As at 31 December 2019, the Group’s net order book stood at $67,092,000 (2018: $7,000,000). Subsequent to the financial year-end, the Group secured several fabrication contracts of $18,000,000 with completion and deliveries extending into the second quarter of 2021.
"Although the Group expects the market environment to remain challenging in the next twelve months due to global economic risks as well as the impact of the COVID19 outbreak, the Group expects to secure additional contracts over the course of the year ahead," Dyna-Mac said.
It added that it continues to source and negotiate for new contracts, both in the offshore segment of the oil and gas industry, as well as onshore works requiring the group’s expertise in detailed engineering, fabrication, and construction.