0.00 Could you please talk about your main products and services, and the markets you are trading in?
Servtech offers a range of services for the oil and gas, power, petrochemical, water, marine and process industries. We have two main divisions; the valves division caters to service, repair and testing of all kinds of valves. Servtech is among the early service providers to be certified by The National Board of Boilers and Pressure Vessels in the region. The metrology division caters to calibration and service of flow meters and instruments.
1.05 Highlight your company’s achievements in 2015 in terms of contract wins?
Servtech did pretty well in 2015, winning major contracts across the Middle East. Major contracts included Prover Calibration for SEC (Saudi Aramco), valve service and testing for YTL (Lebanon), valve service and repair contract spanning two years for EMAL (Abu Dhabi), valve service and repair contract for RAK GAS (Ras Al Khaimah), prover calibration and service for ADCO (part of ADNOC Group of companies, Abu Dhabi), and metering system calibration for Gazprom (Iraq) to name a few.
2.55 How was your company’s business/revenue affected last year, due to the declining oil prices?
The decline in the oil price did affect the company’s revenue as many projects were put on hold, even after the contracts were won by us. Prices were brought down dramatically which brought down margins. However, the prevailing market conditions also helped us enter certain markets that were hard to enter previously with penetration pricing strategies.
3.35 Who are your major clients? What are the projects you are currently working on?
Our major clients include most of the ADNOC Group of companies namely ADMA, Takreer, Al Hosn Gas, EMAL (Abu Dhabi), Dubai Aluminium, Dubai Petroleum, Dubai Natural Gas, Ras Al Khamiah Gas, VTTI Refinery (Fujairah), Socar Aurora (Fujairah), Horizon Energy (Fujairah), Fujairah Asia Power Company, Saudi Electric Company, CTSS (Nigeria), YTL (Lebanon), and Gazprom (Iraq). The major projects that we are currently working on include prover calibration for ADCO, online valve testing and repair in RAK Gas, and valve refurbishment in EMAL.
4.10 What are your corporate plans for 2016? How do intend to expand?
We are trying to focus more on the Abu Dhabi and Saudi markets for 2016 and we hope to win more contracts this year. We have also expanded our service range to a new division from 2016 which includes witnessing and safety consultancy and certification. Heavy focus is being put into this division at the moment and we target to get a market share of 9% in the UAE by the end of 2016.
