Beng Kuang expands into chemical cleaning in oil and gas industry
The new business, called Clean Concept Works, will focus on chemical cleaning and hot oil flushing services. These processes are essential in the pre-commissioning and maintenance of floating production storage and offloading vessels (FPSOs).
This ensures that vital fluid systems of the vessels – including piping, hydraulics and lubrication circuits – operate 'seamlessly within the demanding offshore environment of FPSOs', said Beng Kuang.
The formation of Clean Concept Works reflects Beng Kuang's commitment to identify 'growth-oriented opportunities' in the oil and gas industry, said the group's chief executive Yong Jiunn Run.
Restructuring and rebranding
Separately, Beng Kuang has also conducted an internal restructuring and rebranding exercise to streamline onshore and offshore activities within its infrastructure engineering division.
The division specialises in asset integrity solutions for floating assets in the oil and gas industry, such as FPSOs and floating storage and offloading vessels.
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With the streamlining, customers can 'more easily identify and access our capabilities as a fully integrated solutions provider', noted Yong.
He added: 'We believe that these strategic initiatives will not only enhance our market positioning, but also strengthens operational efficiency, fosters cross-segment synergies and broadens the group's portfolio of service offerings in both onshore and offshore markets.'
The streamlining follows other moves Beng Kuang has undertaken to pivot to an asset-light model , following a strategic review in 2021.
The company shuttered its ship chartering, hardware distribution and bottled water supply businesses, while focusing on infrastructure engineering and corrosion prevention.
As Yong told The Business Times last year: 'We have been hard hit by the oil and gas downturn – at that time we were straddling two warehouses, vessels, a yard in Batam… when you are asset light, in a downturn you can walk away very quickly.'
Beng Kuang shares ended Wednesday at S$0.24, down S$0.01 or 4 per cent, before the announcement.
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