Bahrain´s repair yard Asry sees a record y[ds_preview]ear for rig contracts. However, revenues remain under pressure and margins are tight.
As one of the leading ship and rif repair facilities in the Arabian Gulf, Asry recently started works on the »Bob Palmer«, owned and operated by Rowan Companies. It represents the 100th rig repair job to the yard, as 2016 posts the highest number of rig repair contracts in the yards history.
According to Shaikh Daij Bin Salman Al Khalifa, Chairman of the Board of Directors, the diversification into rig repair has »continually proven to be one of the yard’s most perceptive moves«, with its revenue cycle complementing ship repair’s cycle. »This milestone is especially encouraging considering the enormous pressure the rig market is still under,« added Offshore Services General Manager, Rob Bryant. While revenues remain under pressure, the number of rig projects coming to the yard would make Asry the market leader for rig repair in 2016, with 20 already repaired by August, the official announcements states. Earlier in the year there were 16 rigs simultaneously in the yard, a record since the division began in 2008.
However, the record number of projects is still not translating into record revenues. »Margins are very tight,« Bryant confirmed, »so we are working closely with our clients to meet their repair needs in the most affordable way possible, without compromising the quality and safety standards that keep them coming back.« The increased movement in the rig repair market comes on the heels of an uncertain 2015, and more predictability going forward. »Following the uncertainty that dominated the rig market in 2015 due to major global oil price fluctuations,« Bryant explained, »Mideast rig owners and operators have a clearer understanding in 2016 of the future course for the market. Repair scopes are still only including the essentials to meet Survey requirements, but a more predictable future is relaxing the anxiety that choked the market last year.«
Founded in 1977 in Bahrain, Asry´s facilities include a 500,000dwt drydock, two floating docks of 252m and 227m in length, 15 repair berths with a total length of approximately 4,000m, twin 255m slipways, as well as a full range of workshops and service centres.
