Coastal Contracts receives order for three OSVs
Malaysia’s Coastal Contracts Bhd’ has through its subsidiaries Coastal Offshore (Labuan) Pte Ltd and Thaumas Marine Ltd secured contracts for the sales of three units Offshore Support Vessels (“OSV”) and three tugboats for an aggregate value of approximately RM180 million ($56 million).
Clinching of these new contracts has further strengthened the Group’s already sizeable order book to RM2.4 billion. Of this, the vessels sales order book constituted RM1.2 billion. The balance order book comprised RM1.2 billion for the Group’s first Jack-up Gas Compression Service Unit charter contract for Petroleos Mexicanos (“Pemex”).
All of these vessels are expected to be delivered in 2014 and 2015. Consequently, the revenue stream from these vessels is expected to contribute positively to the top and bottom line performance of the Group for the financial years ending 31 December 2014 and 31 December 2015.
Ng Chin Heng, the Executive Chairman of Coastal, commented: “Following the strong rebound momentum of the Group’s shipbuilding arm in FY2013, I am pleased to announce that Coastal Group has secured a major win of vessel sales orders with an aggregate value of approximately RM180 million. As of to date, the cumulative vessel sales order book is stood at RM1.2 billion, which is significantly higher than the order book as at 30 June 2013, which amounted RM676 million only. This indicates steady replenishment of the Group’s vessel sales orders in the current buoyant offshore market. With the current sizeable order book, we believe we are in the right position in executing the Group’s expansion plan.”
Ng further added: “We anticipate that 2014 will see continued global economic growth, with both Europe and United States playing an influential role. As for the industry outlook, we foreseen both shallow and deep-water offshore activity is likely to propel OSV demand further in the medium term, especially for higher specification OSV. In the recent years, significant investments in Mobile Offshore Drilling Units to help explore and develop deep-water oil and gas resources have been made. Therefore, we expect there will be more MODUs delivered in 2014 and 2015. This will be another key driver for the demand of high specification OSV.”