What's the "Cash Cow Business"? How much cash will be generated for Technics Oil?
Haha you join the forum but never read the NextInsight posting.
A NEW revenue stream is about to open up for Technics Oil & Gas -- and what a strong gush of cash it promises to grow into.
Imagine a stream of offshore support vessels such as AHTS and PSVs coming to berth at Technics' new jetty, off Loyang Way, for a range of necessary services.
The revenue and profit potentially could run into millions of dollars a year, adding to its core business of being a full service integrator of compression
systems and process modules for oil and gas customers.
The jetty and related infrastructure as well as deep-water dredging for a draft (minimum depth of water a vessel can safely navigate) of 6.6 metres have been
completed after 3 years and at a cost totalling nearly S$20 million.
David Tay, an executive director of Technics Oil & Gas, told NextInsight that about a fortnight ago, the Maritime Port Authority gave permission for Technics
to commence business at the jetty, which is sited within Technics' premises housing its fabrication yard and HQ.
There is only one other similar, but bigger, jetty operations in this part of Singapore where demand for services is high, especially from clients whose offices
are in the vicinity.
An attraction for potential clients is that this is a relatively uncongested sea area compared to the alternative site of Jurong.
At the jetty, assets can be unloaded from, or loaded onto, vessels with the use of Technics' heavy lift equipment.
Other facilities are available for services such as sand-blasting and spray-painting.
It' s early days to be certain about the revenue from the jetty business but let' s use the following simple parameters to get a sense of the numbers:
1). Up to 5 vessels can berth at any one time and vessels berth for only 3 hours each.
200_davidtay
David Tay, executive director of Technics Oil & Gas.
2). Conservative average revenue of S$3,000 per vessel for berthing, crane services and labour.
3). Average of 2.5 vessels a day for 365 days a year.
The revenue would then be S$2.75 million a year.
Add on a host of other services that vessels are likely to require, and the potential upside to that conservative revenue guesstimate becomes evident.
Technics expects to welcome its first jetty customer before July 10, when a vessel is scheduled to arrive from India with a ROV (remotely operated vehicle) for demobilisation.
Examples of services for vessels berthing at Technics' jetty. Minimum rates:
&radic Berthing alongside main jetty: S$19 per metre per 24 hours.
&radic Berthing alongside another vessel: S$8 per metre per 24 hours
&radic Mooring & unmooring gang: S$55 per hour
&radic Supply of first 50,000 litres of water: S$7 per 1,000 litres
&radic Per connection charge: S$50
&radic Crane hire (50 tons): $190 her hour
&radic Crane hire (200 tons): $980 her hour.
&radic Crane crew: $105 per hour
&radic Internal trucking (prime mover): $70 per hour.
&radic Portable toilet: $250 for 1-3 days.
&radic Disposal of oily waste (15 tons and below): S$1,300 per order
NextInsight - Latest News