Coastal Contracts Reaches Vessel Agreements

Coastal Contracts Bhd secured contracts valued at RM130 million (about $34,002,944 million) for the sale of two offshore support vessels (OSV) and six low-end vessels.

Coastal Contracts bagged these contracts through its wholly-owned subsidiaries, Coastal Offshore (Labuan), Thamaus Marine Ltd and Pleasant Engineering Sdn Bhd. All of the vessels are expected to be delivered in 2015 and should positively contribute to the company’s bottom line.

 "The revenue stream from the latest contracts is expected to contribute positively to the earnings per share and net assets per share of Coastal Group for the financial year ending Dec 31, 2015," Coastal Contracts said in a statement.

The netted contracts raise Coastal Contracts’ order book to about RM3.8 billion (about $9,880,000,000 billion). Vessel and rig sales constitute RM1.97 billion of their order book.

Coastal Contracts executive chairman Ng Chin Heng also said the lifting of US sanctions on Iran could benefit the company because some of its customers have strong relationships working with Iranian oil and gas companies. Post-sanction, Coastal Contracts believes Iran can create more opportunities in the OSV market.