FRIDAY, March 29, 2024
nationthailand

BJCHI confident of 15% revenue growth this year

BJCHI confident of 15% revenue growth this year

BJC Heavy Industries (BJCHI), which engages in steel fabrication on a made-to-order basis and installation of industrial furnaces for manufacturing processes, targets at least 15-per-cent revenue growth this year.

The forecast is based on expectations of continued revenue streams from projects in hand, especially the Petrobras (FPSO P75 and P77) project, which began coming in last year.

BJCHI will also continue to bid for various projects in Brazil, Australia and other regions.

Chief financial officer Sam Yu Yoon said the declining crude-oil prices had no impact on the firm’s contract bids, as most energy-related companies had not put the brakes on their investments.

BJCHI has various revenue sources that are not limited to the industrial sector. It has a backlog of projects worth more than Bt3.3 billion whose revenue will be fully realised this year. Moreover, BJCHI is awaiting the results of its bids on high-potential projects with combined worth of more than Bt8 billion. The bid results will be revealed this quarter.

"Energy prices, especially the current prices of oil, which have been declining steadily, do not affect BJCHI’s contract bids much, as most energy-related firms have not revised their investment plans," he said. "However, BJCHI is closely monitoring the situation in order to make appropriate adjustments if and when necessary should the oil firms cut back their investment budgets in the near future.

"In any case, BJCHI still has plans to diversify revenue sources to spread out its business risks and lessen excessive reliance on a particular business sector. BJCHI has the expertise to take on contracts in various industries, ranging from oil, natural gas, and mining to power-generation plants."

Most of the high-potential projects the firm has bid on are jobs it has already worked on, and has acquired specific expertise, including the readiness for such jobs. Hence the minimum target of 15-per-cent revenue growth should be attainable, the CFO added.

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