Coastal Contracts’ orderbook swells

Kuala Lumpur: Coastal Contracts has won contracts for seven offshore support vessels (OSVs) for a total of RM444m. The deals bring Coastal Contracts’ orderbook to RM2.6bn. All ships are expected to be delivered by the end of next year.

Ng Chin Heng, the executive chairman of Coastal, commented: “These latest contracts will be one of the largest vessel sales orders for the group since its public listing in August 2003.  We are quite optimistic with the market outlook of OSVs, which is underpinned by replacement cycle of older OSVs and a stable crude oil price. In addition, previous years of successful exploratory drilling will require more support from OSVs.”

Ng noted 25% of the current global OSV fleet is more than 25 years old.  [29/09/14]

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