Coastal Secures Subsea Vessel Contract, Malaysia

Coastal Contracts Bhd (Coastal) today announced that its wholly – owned subsidiaries, Thaumas Marine Ltd and Coastal Marine Pte Ltd have collectively secured contracts for the sales of one Subsea Support Maintenance Vessel (SSMV) and two units of low-end vessels for an aggregate value of approximately $46 million.

Apart from the SSMV and one low – end vessel which were sold to repeat customers, the second low – end vessel was sold to a new customer.

Mr Ng Chin Heng, the Executive Chairman of Coastal, commented: “I am pleased to announce that Coastal Group has secured another batch of vessel sales orders with an aggregate value of approximately RM148 million. With these new orders under our belts, Coastal Group’s cumulative vessel sales orders secured in FY2013 alone amounted to approximately RM1.5 billion, which has reached a fresh record high of yearly vessel sales orders.”

“We believe the current pace of expansion in OSV orders will not be short – lived, as stable crude oil prices will continue to fuel more offshore exploration, development and production activities. We have already scaled up the shipbuilding value chain to focus on larger and deepwater capable OSV with specialisations to service increasingly complicated offshore operations and rigs in deepwater regions and even in ultra – deepwater regions. We believe the current buoyant drilling activity and bidding activity will be a strong catalyst to help Coastal Group capture the strong demand for OSV and fast – track its earnings expansion,” Mr Ng added.

The vessels are expected to be delivered in 2013 and 2014.

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Press Release, December 11, 2013