Improving Outlook For Process Industry Demand

PEC Tops S$100 million in New Contracts in Asia

A strengthening outlook for the process industry in Asia and the Middle East is driving new contract wins, according to project services group PEC.

The group recently announced that it had secured more than S$100 million in new contracts in Asia, within the refining and petrochemical processing sector. Pointing to a recovery in the process industry in Asia and the Middle East over the last 12 months, the group now expects to see further breakbulk demand growth this year. 

“PEC expects investments in refining and petrochemical projects to come onstream in Asia and the Middle East in the next five years, including an increasing number of integrated crude and petrochemical facilities,” said Robert Dompeling, PEC’s group chief executive officer, adding that the group was “riding on the improving outlook” for the process industry in the region.

Two Storage EPCs

Headquartered in Singapore, PEC provides integrated project and maintenance services to the oil and gas, petrochemical, terminal and pharmaceutical industries across Asia and the Middle East. The group is one of the largest providers of maintenance services in Singapore.

Two of the recent contract wins for PEC are for the provision of engineering, procurement and construction of two storage facilities in Singapore and Malaysia, with both projects expected to be completed within 20 months.

“These contracts add not only to PEC’s growing reputation in the terminal sector but also to the group’s well-established track record in the process industry,” Dompeling said.

Higher Level of Activity

The group recently reported record income for the financial first half of 2019 as revenue crossed S$200 million on “higher level” of activity.

Net profit after tax also rose for the group, touching S$5.0 million, an improvement from the first half of fisical year 2018’s S$3.0 million.

A third recent contract for PEC covers the provision of mechanical and civil works for an upgrading project in East Malaysia.

“We are cautiously optimistic of the near-term outlook, barring unforeseen circumstances and geopolitical factors that could hinder the industry’s improving prospects,” Dompeling added.