Coastal Sells Six OSVs, Malaysia

Coastal Sells Six OSVs

Coastal Contracts Bhd (together with its subsidiaries Coastal Group) today announced that its wholly-owned subsidiaries, Coastal Offshore (Labuan) Pte Ltd and Thaumas Marine Ltd have collectively secured contracts for the sales of six units Offshore Support Vessels (OSVs).

The deal comprise of one Subsea Support Maintenance Vessel (SSMV), one Platform Supply Vessel (PSV) and four Anchor Handling Tug Supply (AHTS) vessels for an aggregate value of approximately $100.3 million.

Apart from the one PSV and two AHTS  vessels which were sold to a repeat customer, the rest of the vessels were sold to a new customers. Clinching of these new contracts has further strengthened the group’s already sizeable order book.

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 RM 1.35 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.

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 RM 1.28 billion worth of vessel sales orders a waiting delivery to customers up to 2014.

 

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Source: coastal, October 21, 2013