(Alliance News) - Industrial equipment provider Northbridge Industrial Services PLC said Wednesday five contracts awarded to a Malaysian joint venture partner of its subsidiary have been extended for a further two years, on improved terms.
Tasman - Northbridge's oil and gas drilling tools rental unit - said the five contracts were awarded to its Malaysian joint venture partner, Olio Resources Sdn Bhd, at the beginning of 2018.
As part of the JV, Tasman South East Asia - based in Malaysia - and Tasman Asia Pacific - based in Singapore - supplied drilling tools to Malaysian state-owned oil firm Petroliam Nasional Bhd, better known as Petronas.
"The improvement in terms relate to inspection and repair services which are offered alongside the rental of oil tools to the joint tender partners, who include five of the top international oil and gas operators in the region," Northbridge said.
Northbridge said the venture is currently loss making but the extension, and improved terms, will make a "substantial" contribution to reducing the venture's deficit in 2020, with the company expecting the JV to turn a profit in 2021.
"Other businesses within the group continue to make good progress and the board is confident that Northbridge is in line to meet current management expectations," Northbridge added.
Shares in Northbridge Industrial Services were 5.1% higher in London on Wednesday midday at 121.35 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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