Coastal Contracts clinches RM444m vessels orders

PETALING JAYA: Coastal Contracts Bhd has won contracts worth RM444 million for the supply of seven units offshore support vessels (OSV).
In a filing with the stock exchange, it said all of these vessels are expected to be delivered in 2014 and 2015.
"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 December 31, 2014 and December 31, 2015," it added.
As of September 26, Coastal Contracts had a total order book of RM2.6 billion including the above said contracts.
Of the RM2.6 billion order book, vessels sales order book stood at RM1.4 billion, while the balance RM1.2 billion from its first jack-up gas compression service unit charter contract for Petroleos Mexicanos.
Coastal Contracts chairman Ng Chin Heng said the group is optimistic about the market outlook of the OSV segment, which is underpinned by replacement cycle of older OSV and stable crude oil price, coupled with the support from successful exploratory drilling in previous years.
"We look forward to meeting our customers' expectations with quality and timely delivery of our vessels as well as capitalise more opportunities during the replacement cycle of older OSV given that 25% of current global OSV fleet is more than 25 years old," he said.