Logindo eyeing $160m contracts

Shipping company PT Logindo Samudramakmur Tbk is bidding to win contracts worth a combined US$160 million to supply deep sea vessels to a number of multinational firms, Bisnis Indonesia daily reported on Thursday.

President Director Eddy K. Logam was quoted as saying that a number of oil and gas firms have planned to carry out offshore exploration works over the next two years and would require the vessels. ?We?re optimistic to win the tenders,? he said.

The company, which focuses on offshore shipping services, made a muted debut on the Indonesia Stock Exchange Wednesday as its shares closed at Rp 2,800, or the same with the offering price. The company launched an initial public offering earlier in the month, releasing 30 percent shares to investors at a price of Rp 2,800 each.

Logindo will use 58 percent of the funds to pay off its loans, 40 percent for capital expenditure (capex) and the remaining 2 percent for its working capital.

The company has allocated $80 million to its 2014 capex budget as it plans to purchase between four and five mid- and large-sized vessels to support its growing operations.

The new vessels are expected to boost Logindo?s revenues next year by around 40 percent, equal to around $81.13 million. For 2013, Logindo aims to post around a 70 percent revenue increase from the previous year or more than $55 million. (*)