Dockwise Lands $55M in New Contracts, MSA with Keppel

Dockwise Ltd. announced Wednesday 12 new awards totaling USD $55 million, of which six, to the value of more than USD $15 million, are for execution in Q4 2011. The remaining contracts are for execution in 2012 and 2013.

Furthermore the company has entered into a Master Service Agreement (MSA) with Keppel of Singapore for transportation of their jack-up and semi-submersible drilling units.

The USD $55 million awards comprise contracts for transportation of four jack-up drilling rigs, one semi-submersible drilling rig, assorted dredging equipment, offshore transfer and elevation platforms and tugs & barges. Transportations in 2012 will now also include a SPAR buoy from Finland to the Gulf of Mexico and a LOI for a multi-voyage module transportation assignment.

The Master Service Agreement (MSA) with Keppel of Singapore is similar to the agreement Dockwise announced with Seadrill in spring 2010 and will standardize conditions and accelerate negotiations on single transportation assignments for drilling rigs.

André Goedée, Chief Executive Officer of Dockwise, commented:

"Operating activity remained subdued in the fourth quarter of 2011, reflecting the impact of global trade conditions. Despite this challenge, our business in the period has remained cash positive and will satisfy key performance criteria. Headline results for the quarter may be impacted by an impairment reflecting the sale of our yacht transportation business, DYT, closure of which is expected in Q1 2012. DYT will appear in the 2011 full year results statement under assets held for sale.

Looking ahead, we firmly continue to pursue business opportunities for the short term. A fundamental increase in activity levels and better pricing conditions are not expected before the second half of 2012. At the same time we continue to be actively engaged in tendering for T&I projects in various important regions and expect a further increase in backlog over time. Current contract developments for the longer term are in my view an encouraging affirmation of client confidence in Dockwise as a partner for challenging projects ahead."