Coastal Contracts Bhd announced that its wholly-owned subsidiary, Thaumas Marine Ltd, has secured contracts for the sale of one unit Anchor Handling Tug Supply (“AHTS”) and one unit Subsea Support/Maintenance Vessel for an aggregate value of approximately RM170 million.
These vessels are scheduled for delivery up to 2014. 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 RM1.2 billion worth of vessel sales orders awaiting delivery to customers up to 2014.
Mr Ng Chin Heng, the Executive Chairman of Coastal , commented:
“Following our first and second order book intakes for 2013, I am pleased to announce that Coastal Group has bagged another vessel sales orders amounting RM170 million. Including these new deals, Coastal Group has managed to clinch vessel sales orders totalling RM1 billion in 2013 alone. Cumulatively, the value of Coastal Group’s outstanding vessel sales order book has reached approximately RM1.2 billion. This will further underpin the Group’s growth momentum as well as earnings visibility for the next one to two years.
“We are optimistic about the steady growth of Offshore Support Vessel (“OSV”) in the future, given that OSV is a moderately developing market with no other substitutes currently available which makes it the backbone of the oil and gas upstream segment.”
Mr Ng further added:
“With stable recovery of OSV market, Coastal Group remains confident in its fundamental ability in building right mixed of purpose-driven OSV for customers. Moving forward, we will continue to bolster our building programme to leverage on the OSV supply-demand disequilibrium.”
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Press Release, August 13, 2013