Bina Buana focuses on oil, gas sector

By Tri Subhki R

IDX-listed shipping firm PT Pelayaran Nasional Bina Buana Raya Tbk is focusing on the oil and gas sector by adding three more offshore support vessels (OSP) this year and two other OSPs next year.

Currently, the company operates four units of anchor handling tug service (AHTS) and more than 30 sets of tugs and barges.

"We see growing demand in long term period in oil and gas sector," Bina Buana's Director Sean Lee Yun Feng said. However, he acknowledged that the current conditions in the shipping industry in particular and global market are challenging.

The company has purchased five new vessels although has yet to secure any contracts from customers. "We are quite optimistic on the back of our 90 percent utilization of the existing vessels," Bina Buana's President Director Joseph Charlie Lie said.

The company allocates US$130 million this year to purchase the new vessels. To buy new vessels, it requires 70 percent of bank funding and the rest from the equity.

Editing by Reiner Simanjuntak