Bahrain-based Asry, a leading ship and rig repair yard, is targeting more business in Saudi Arabia, which contributed about 40 per cent of its total sales last year, the company’s top official has said.

Chief executive Nils Kristian Berge told the Gulf Daily News, a sister publication of Gulf Industry, that the number of rigs in Saudi Arabia continues to increase as do the number of LPG, chemical tankers and container carriers in the region due to the development of Jubail Industrial City and expansion of Dammam port.

“Asry is looking to convert the increased traffic into potential business opportunities if those vessels are due for dry-docking,” he said. However, the main driver of marine repair optimism remains Saudi Aramco, which is showing no signs of decreasing its activ-ities.

This combined with a gradually recovering global market, makes for a good outlook for business growth in the country, he added.

Asry has also been working with other major marine players such as Zamil, who are also showing signs of optimism.

“Since opening a new representative office in Al Khobar in the country’s Eastern Province during the first quarter last year, Asry’s Saudi interests have steadily been on the rise.”

The company realised that by creating a local presence, it would have a greater opportunity to capitalise on growing market poten-tial. The year-on-year growth in Saudi business is mainly due to the offshore services division, which is largely Saudi-based revenue.

Asry is a specialist in rig repairs

“Of Asry’s total Saudi Arabian business last year, 66pc came from the offshore services division.”

Major rig jobs for the company included three of Saudi Aramco’s jack ups; ARB 1 which was in for leg guide repairs, while ARB 2 and Arabiyah 3 both underwent five-year surveys.

Asry also carried out minor repairs to Nabors Rig 655, Shelf’s High Island 7, and Phase One of maintenance on Focus Energy’s Jupi-ter 1, he said.

Asry said its recent initiatives to drive efficiency will see it making gains this year.

STRATEGY PAYING OFF

It said its strategy saw it netting $163 million in revenue last year from the repair of 193 vessels, more than in the previous year.

Berge said the yard’s double-headed strategy focused on two primary goals – firstly, to make the yard a ‘one-stop’ facility that as-pires to provide every customer with all repair needs in-yard, and secondly to unify the organisation and resources of the yard un-der a ‘one yard’ philosophy to streamline all divisions.

The strategy was a response to increased regional competition, the global maritime market not showing any significant growth, and the average age profile of the fleets operating in the region remaining low, which made it difficult for Asry to maintain annual revenues made in previous years, he added.

“With ship owners still feeling the effects of the global shipping downturn, it was recognised that customers need reassurance that every dollar they spend on maintenance is providing essential optimisation to make their fleet as profit-efficient as possible.”

Asry’s response was the launching of Project Jupiter aimed at building the “most comprehensive cluster of onsite specialist contrac-tors in the Arabian Gulf”.

“By the end of last year, Asry had a portfolio of 33 specialist contractors on-site,” Berge said.

“A corporate restructuring also streamlined the structure to make operations more customer-focused,” he added

Several divisions were integrated into a more streamlined set of 10 clear and distinct primary divisions.

Identification of revenue-generating divisions allowed the setting up of processes, reporting lines, and job responsibilities in a way that ensured customer satisfaction became the highest priority and the re-appointment of several senior management positions to ensure the most appropriate talent for the new roles and responsibilities was done.

“The new organisational structure was implemented throughout last year and yielded two strategic successes – the creation of the Navy, Defence and Industrial Projects (NDIP) Department under the Ship Repair Division and the establishment of a new representa-tive office in Saudi Arabia.”

The new NDIP department dedicated to military projects has brought a specialised team to Asry to formally focus on the yard’s ex-perience in the defence sector making it differentiated from other regional yards, he said.

This new move, according to the chief executive, was instrumental in Asry’s growth in the sector of defence vessel repair with a notable increase in the number of grey ships docking throughout.