Middle East
and Asia

Despite challenging economic conditions, the Middle East and Asia region secured more than A$90 million in new and renewed projects during the period.

Our Transfield Emdad Services LLC joint venture, which provides operations and maintenance services, secured several new contracts involving shutdowns with the Abu Dhabi National Oil Company (ADNOC) Group. Recent improvements in performance and service quality are providing a platform for future growth as customer relationships mature, strengthening the outlook for the business.

Intergulf General Contracting LLC, a subsidiary of Transfield Emdad Services LLC, continues to perform well, benefiting from contract wins during the period from civil-related activities in the hydrocarbons sector in the United Arab Emirates.

Contributions from the Middle East and Asia business during the period were affected by the stronger Australian dollar and reduced volumes across the region. Proportionately consolidated revenue fell 10.2 per cent to A$116 million and proportionately consolidated EBITDA declined by 18.4 per cent to A$6.4 million.

Project activity in the region remains stifled, particularly in the United Arab Emirates where many projects have been postponed. Despite strong oil prices, constrained market conditions are expected to continue.

Maintaining margin levels is challenging due to increased competition across the region. However, recognition for quality service delivery is becoming a key differentiator in some markets, particularly in Qatar.

Our Transfield Mannai Facilities Management Services (TMFMS) joint venture is performing particularly well in this regard as it continues to grow the business by building a reputation as a quality service provider.

Hofincons’ business technology and consulting division is expanding into international markets including Qatar, North America and Australia. This division provides services including data capture and asset performance analysis, which is used to optimise asset maintenance programs.

A United Arab Emirates company based in Abu Dhabi, Transfield Emdad Services LLC is a joint venture between Transfield Services and Emdad LLC.

Transfield Services’ acquisition of Intergulf General Contracting LLC, through Transfield Emdad Services LLC, has provided a platform for growth in the Gulf Region. Intergulf provides maintenance and capital works services to the oil, gas and power industries in the United Arab Emirates and enhances our skills and resource base in the Gulf Region. Transfield Emdad Services LLC together with Intergulf has 1,018 employees.

In Qatar, we provide strategic facilities and asset management services in a joint venture with Mannai Corporation. The joint venture comprises all of the assets, manpower and ongoing contracts of Mannai’s former building services and maintenance company, Manwell Technical Services. TMFMS works with more than 100 clients including Qatar Foundation, Exxon Mobil, Shell, Qatar Petroleum and several government departments and agencies.

A strategic review of the region has identified project opportunities in the resources and infrastructure segments. Strategic partnership models have been identified and will be established to provide local structure to deliver services effectively in the Middle East environment.

Transfield Services continues its commitment to support the business in the region as progress is made to establish scale. The focus is to ensure the business remains profitable under current conditions and is prepared for increased project activity as conditions improve.