Coastal Contracts' Subsidiaries Bag $99.8M Contracts to Build 6 OSVs
Malaysia's Coastal Contracts Bhd (Coastal or Company, and together with its subsidiaries Coastal Group or Group) announced Monday that its wholly-owned subsidiaries, Coastal Offshore (Labuan) Pte Ltd and Thaumas Marine Ltd have collectively secured contracts for the sales of six Offshore Support Vessels (OSV), which comprise one Subsea Support Maintenance Vessel (SSMV), one Platform Supply Vessel (PSV) and four Anchor Handling Tug Supply (AHTS) for an aggregate value of approximately $99.8 million (MYR 318 million).
Apart from the one PSV and two AHTS which were sold to a repeat customer, the rest of the vessels were sold to new customers. Clinching of these new contracts has further strengthened the Group’s already sizeable order book, which provides greater earnings visibility for the Group.
All of these vessels are expected to be delivered in 2013 and 2014. 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 (FY) ending Dec. 31, 2013 and Dec. 31, 2014. As of to date, Coastal Group has approximately $401.7 million (MYR 1.28 billion) worth of vessel sales orders awaiting delivery to customers up to 2014.
Ng Chin Heng, the executive chairman of Coastal, commented:
“I am pleased to announce that Coastal Group has secured another major win of vessel sales orders with an aggregate value of approximately $99.8 million (MYR 318 million). Following our order book intakes in April, July and August this year, this is our fourth major win in FY2013. As of to date, the cumulative vessel sales orders secured in FY2013 alone amounted to approximately $423.6 million (MYR 1.35 billion), which is approximately two times of the Group’s total vessel sales orders secured in FY2012 which amounted $219 million (MYR 698 million). This is a strong indicator for the Group’s rebound momentum, which is benefiting from the currently booming oil and gas sector.
Our order inflow looks favorable. Including these new contract wins, Coastal Group’s vessel sales orders as at to date stands at approximately $401.7 million (MYR 1.28 billion). With current highly buoyant offshore market, we believe the Group would be able to capitalize more opportunities moving forward. Anchored on the buoyant oil and gas upstream sector globally with increasing offshore exploration and production activities, we are upbeat with the prospect of OSV market over the medium to long term, especially for more sophisticated and deepwater-capable OSV.”
Ng further added:
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