Coastal Sells Six Offshore Support Vessels

Coastal Contracts Bhd announced that its wholly-owned subsidiaries, Coastal Offshore Pte Ltd and Thaumas Marine Ltd have collectively secured contracts for the sales of six units Offshore Support Vessels (“OSV”), which comprise one unit Subsea Support Maintenance Vessel, one unit Platform Supply Vessel and four units Anchor Handling Tug Supply  for an aggregate value of approximately RM318 million.

Apart from the one unit PSV and two units AHTS which were sold to a repeat customer, the rest of the vessels were sold to new customers.

Clinching of these new contracts has further strengthened the Group’s already sizeable order book, which provides greater earnings visibility for the Group.

All of these vessels are expected to be delivered in 2013 and 2014. 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 2013 and 31 December 2014. As of to date, Coastal Group has approximately RM1.28 billion worth of vessel sales orders awaiting delivery to customers up to 2014.

Mr Ng Chin Heng, the Executive Chairman of Coastal, commented:

“I am pleased to announce that Coastal Group has secured another major win of vessel sales orders with an aggregate value of approximately RM318 million. Following our order book intakes in April, July and August this year, this is our fourth major win in FY2013. As of to date, the cumulative vessel sales orders secured in FY2013 alone amounted to approximately RM1.35 billion, which is approximately two times of the Group’s total vessel sales orders secured in FY2012 which amounted RM698 million. This is a strong indicator for the Group’s rebound momentum, which is benefiting from the currently booming oil and gas sector.

Our order inflow looks favourable. Including these new contract wins, Coastal Group’s vessel sales orders as at to date stands at approximately RM1.28 billion. With current highly buoyant offshore market, we believe the Group would be able to capitalise more opportunities moving forward. Anchored on the buoyant oil and gas upstream sector globally with increasing offshore exploration and production activities, we are upbeat with the prospect of OSV market over the medium to long term, especially for more sophisticated and deepwater-capable OSV.”

Mr Ng further added:

“Finally, we are pleased to have the opportunity to enter business relationships with our new customers. We would like to thank them for selecting Coastal as their business partner for their fleet expansion programme.

Moving forward, we will continue to broaden our customer base as well as meeting our existing customers’ needs by building more high quality purpose-driven OSV.”

Press Release, October 21, 2013