Asry plans structural reorganisation [Gulf Industry]
(Gulf Industry Via Acquire Media NewsEdge) Asry will fully reorganise its internal structure and have a greater focus on expanding into diversified territory such as consultancy and newbuilding even as the company expects total revenue in 2013 to surpass that of the previous year by a reasonable margin, a senior official says.
Nils Kristian Berge, chief executive, also said Asry's new consultancy division is performing significantly above expectations.
Asry has recently completed a period of investment in its facilities and capabilities, and in the near-term the company is focusing on bedding-down and consolidating these new resources.
"The next two years will see a unification of Asry's full portfolio of offerings, and the growth strategy for the near-future will be two-fold: firstly a full reorganisation of the company's internal structure will streamline the labour force and physical assets to be able to efficiently maintain our excellent operational quality and safety standards and, secondly, we will be leveraging the yard's in-house expertise to continue to expand into diversified territory such as consultancy and new-building, said Berge.
The total target for 2013 was to have revenues in excess of $200 million which the company is on course to achieve, Berge said before the close of the year, adding it represented approximately a 14 per cent surge over 2012's $175 million.
The ship repair services division continues to be the largest contributor with just over half of all income. In 2013 the company will likely repair more than 200 vessels against 185 repaired in the previous year.
Berge: pushing the envelope on quality and safety
Offshore Services will be a close second. Consultancy and other miscellaneous operations make up the remainder. The breakdown is roughly unchanged in comparison to 2012.
The consultancy division has seen new business levels in its first year of operations already exceed target by 84 per cent, with a strong pipeline of work closing out the year. Asry Consultancy Services (ACS) was founded at the beginning of 2013 with a view to providing independent engineering and design expertise to mitigate maritime risk, and the move is paying greater dividends than expected. A large percentage of those projects are being sourced and driven by ACS independently of Asry's commercial operations.
"This proactive approach is the reason for higher than expected revenues – the anticipated end of year total will likely be more than double their target, and the targets for Year Two are already looking like significant underestimates," said Berge.
As regards Asry's power barge segment, the company commented that due to the complicated, cooperational nature of the commissioning, packaging and installation of floating power plants, its power barge business remains steady, with two barges now completed. Negotiations are now taking place with several interested parties to solve the challenges of deploying the completed packages in-situ, including the creation of regulatory frameworks that will manage their operation. As Asry is a pioneer in this field, forging new ground requires time and patience. However, discussions continue to make progress, said Berge.
A RESPECTED BRAND
Commenting on the Asry brand and the efforts to push its appeal further, the company says it has three unique qualities that separate it from regional yards. Firstly, it explains, it has the greatest depth of experience in the region having been operational since 1977. This gives it a huge head-start in terms of operational excellence in quality and safety, which is evident in its leading list of certifications, and rock-solid customer retention. Secondly, its range of facilities from drydock to floating docks, to slipways, to over 4 km of alongside berth space gives customers flexibility and choice. The company can service any kind of vessel, but more importantly it services many different types simultaneously.
The 50th rig undergoing repairs
At any one time it usually has more than 20 vessels in the yard representing most types of craft, from VLCCs to rigs to OSVs to workboats and more. Thirdly, it is very fortunate to be located in Bahrain, not just for its prime geographical location, but also because of the country's business-friendly policies.
"Customers are constantly pleased by the speed at which we can import both spare parts and labour to get jobs done ahead of schedule. When days and hours are vital to cost-reduction for our clients, other Middle East countries can get expensive, but Bahrain has the most advanced setup for ensuring quick turnarounds," says Berge.
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