Dyna-Mac secures S$197m contract for fabrication project

MAINBOARD-LISTED Dyna-Mac Holdings, which fabricates topside modules and structures for the offshore oil and gas industry, has secured a S$197 million contract from repeat customer BW Offshore group for a fabrication project.

The contract was signed with a wholly-owned subsidiary of the BW Offshore group, it said in a statement on Monday. Under the contract, Dyna-Mac will supply, fabricate and construct topside modules for the Barossa Floating Production Storage Offloading (FPSO) vessel. The vessel will be operating in offshore Darwin in northern Australia.

This brings Dyna-Mac's order book to S$368 million, with deliveries up to the year 2023.

The group said it is currently "evaluating the need to expand its yard capacities and increasing its local and overseas fabrication capacity". This is to fulfil potential demand in FPSO topside modules, liquefied natural gas and hydrogen/ammonia production modules, it added.

The above order is not expected to have a material impact on the group's earnings per share and net tangible assets for the current financial year ending Dec 31, 2021.

Dyna-Mac shares closed at 9.5 Singapore cents on Monday, up 1.06 per cent or 0.1 cents.