Coastal group secures RM180m vessel sale

PETALING JAYA: Coastal Contracts Bhd's subsidiaries Coastal Offshore (Labuan) Pte Ltd and Thaumas Marine Ltd have collectively secured contracts for the sale of three units of offshore support vessels (OSV) and three units of tugboats for RM180 million.
The new contracts bring the group's order book up to RM2.4 billion. Of this, the vessels' sales order book constituted RM1.2 billion. The balance order book comprised RM1.2 billion for the group's first jack-up gas compression service unit charter contract for Petroleos Mexicanos (Pemex).
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 Dec 31, 2014 and Dec 31, 2015.
Coastal executive chairman Ng Chin Heng said the cumulative vessel sale indicates steady replenishment of the group's vessel sale orders in the current buoyant offshore market.
"We foresee both shallow and deep-water offshore activity is likely to propel OSV demand further in the medium term, especially for higher specification OSV," Ng said in a statement.