Malaysia: Coastal Group Receives Order for Ten OSVs

Coastal Contracts Bhd announced on July 9 that its wholly-owned subsidiaries, Coastal Offshore (Labuan) Pte Ltd, Thaumas Marine Ltd and Pleasant Engineering Sdn Bhd, have collectively secured contracts for the sale of ten units offshore support vessels (“OSV”) and two units low-end vessels for an aggregate value of approximately RM446 million.

Among the ten OSV sales secured by Coastal Group, six units of them are Anchor Handling Tug Supply (“AHTS”) and being sold to one of our major loyal customers from Middle East. AHTS is one of the popular products of Coastal Group. In the previous financial year, Coastal Group had successfully delivered 9 units of AHTS to customers based in Malaysia, Indonesia, to as far away as The Marshall Island and United States of America.

On top of the six units AHTS, there are four units of OSV, namely Utility Support Vessel (“USV”) and Maintenance/Support Vessel (“MSV”) sold to one of our repeat customers and two new customers. USV and MSV are specially designed to support offshore oil platforms and being used to transport goods and workers to and from offshore oil platforms and other offshore structures.

All of these vessels are expected to deliver in 2012 and 2013. 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 2012 and 31 December 2013. As of to date, Coastal Group has approximately RM583 million worth of vessel sales orders awaiting delivery to customers up to 2013.

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

“These latest contracts will be the largest vessel sales orders for Coastal Group since February 2011, and this will significantly strengthen our vessel sales order book.

We are truly proud and appreciated that our loyal customers has again chosen our vessels for their fleet expansion programme. The proven repeat sales to them will further strengthen the good relationship that we have and also once again proving the quality of our products, as well as trust and confidence given by our customers.

In all, we are pleased to secure these contracts and to have the opportunity to further enhance the business relationships with our new and existing customers. We look forward to meeting our customers’ expectations with timely, quality and efficient delivery of our vessels as we fortify our track record. Our commitment will be demonstrated by bringing mutual benefits and value propositions to all our business partners.”

Mr Ng further added:

“We are glad to secure these major contracts win despite the market of OSV is slightly congested recently. In view of the current challenging market condition and vulnerability of global economy, we have to put in more effort to secure more vessel sales orders in future. With our extensive track record and comprehensive knowledge about the OSV market, we believe Coastal Group will overcome the challenges and continue to experience business stability moving forward.”

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Source: coastalcontracts, July 11, 2012