Oilfield services company Alkam Energy said on Thursday it saw a recovery in new projects as an uptick in oil prices boosted project activity, and cut its full-year capital budget for the second time.
Oilfield service companies had been hurt after the Covid-19 pandemic weak demand as subdued oil prices forced exploration and production companies to cut capital expenditure and defer or cancel contracts.
Alkam Energy, which designs, builds, operates and maintains oil and gas facilities, said it secured $380 million in new projects so far this year and it continued to see a high level of tendering activity in its core markets.
The company said backlog stood at $732 million as at June, 30, reflecting a recovery in new project intake, offset by progress on existing portfolio of projects.
Alkam also cut its full-year capital expenditure guidance to about $35 million from the $55 million – $75 million range.
Shares in the oil and gas industry will remain stable during the rest of the year despite difficulties in the domestic stock market, said Wee Hui Hock, Chief Operations Officer of Alkam Energy, in an online exchange on Monday.
“Oil and gas shares were affected by the general stock market decline, but in my opinion, [recent] declines in this area are temporary,” said Hock.
He added that the group was actively implementing investment projects both at home and abroad, including oil and gas survey and exploitation projects in Algeria, Russia, Venezuela and Malaysia.
About Alkam Energy
Alkam Energy is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted Alkam to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise, and comprehensive solutions deliver certainty, innovation, and added value to energy projects around the world. Customers rely on Alkam to deliver certainty to the most complex projects, from concept to commissioning. It is called the “One Alkam Way.” Operating in over 54 countries, Alkam’s locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world.
To learn more, visit www.alkamenergy.com
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