Miclyn Express Offshore announced the purchase of three new Offshore Support Vessels. A Seismic Support Vessel has been purchased against a 3 year firm contract in Indonesia commencing in August 2011 and including 5 x 1 year extension options.
Two newly built Multi Purpose Offshore Terminal Tugs will also be delivered in September and December 2011 against 5 year contracts with a key customer in Thailand. The three OSV’s were purchased for an aggregate price of US$18.5m and the firm value of the three contracts is US$29.4m.
Two OSV’s were recently redeployed into new long term contracts with minimal downtime between charters. The Voyager Explorer will be operating globally as a 3D seismic vessel with a new customer. The contract commenced in July 2011 for 3 years plus 4 x 1 year extension options. Furthermore, the Miclyn Glory has secured a 3 year contract in Vietnam as a SSV, commencing in August 2011. This is an important regional transaction for MIO as the company looks to expand its geographical footprint in South- East Asia. The firm value of the two new contracts is US$22.4m.
The four new Crew/Utility Vessels recently purchased from a Singaporean Shipyard (announced 8 February 2011) have all been awarded contracts ahead of delivery. They will be deployed in the Middle East and South East Asia against contracts ranging from 6 months to 2 years firm with extension options in place. The firm value of the four new contracts is US$5.9m. MIO also sold the Express 16 in June 2011 for a modest disposal gain as part of its fleet renewal strategy. There are currently 63 Crew/Utility Vessels in the fleet.
Aggregate revenue contribution for these 9 new contracts in FY12 is US$15.8m, with US$9.0m attributable to new vessels entering the fleet.
CEO Diederik De Boer said “These vessel purchases and contract awards reaffirm MIO’s confidence in sustaining strong earnings growth In FY12 and beyond. It is a testament to our ability to deploy capital into vessels that derive strong shareholder returns and increase our long term charter portfolio in keeping with our strategy. We are well capitalised, have high cash delivery and see a strong pipeline of opportunities that will enable us to continue to drive the company’s organic growth in future financial years”.
[mappress] Source: MEO, August 18, 2011