Malaysia’s Coastal signs contracts to sell two OSVs

23 February 2015 (Last Updated February 23rd, 2015 18:30)

Malaysia-based Coastal Contracts' offshore subsidiary has secured contracts for the sale of two Offshore Support Vessels (OSV) to an undisclosed Mexican customer.

Malaysia-based Coastal Contracts’ offshore subsidiary has secured contracts for the sale of two Offshore Support Vessels (OSV) to an undisclosed Mexican customer.

The aggregate value of these deals is around MYR197m ($54m) and the vessels are scheduled for delivery between now and 2017.

Coastal executive chairman Ng Chin Heng said: "I am pleased to announce that Coastal Group has secured its first batch of vessel sales orders for FY2015.

"With these latest sales, our vessel sales order book has further increased to a high of MYR1.46bn, balanced with our long-term charter contract for Pemex project."

"Coastal Group envisages the medium to long-term fundamentals of [oil and gas] industry to remain positive."

The company said that the revenue stream from this deal would contribute to the top and bottom line performance of the firm for the financial years between 31 December 2015 and 31 December 2017.

"Despite current signs of gloom, Coastal Group envisages the medium to long-term fundamentals of O&G (oil and gas) industry to remain positive given the hardly substitutable nature of petroleum," Heng added.

"O&G business is not a short-term game and the window of opportunity may well be very short before the next cycle begins."

In June 2014, Coastal secured contracts to sell six vessels, including three Offshore Support Vessels and three tugboats.

Delivery of the final vessel is scheduled for this year.

Established in 1976, the main services of Coastal are shipbuilding, ship chartering, repair and maintenance, and trading of marine support vessels.