THHE, Destini bag RM739mil deal to supply offshore vessels to MMEA

Vanguard Composite Engineering Pte Ltd manufactures life boats, fast rescue boats, davits systems and hooks.

KUALA LUMPUR: THHE Destini Sdn Bhd, a 51:49 joint venture (JV) between Destini Bhd and TH Heavy Engineering Bhd (THHE), has clinched a RM738.9mil contract to supply three offshore patrol vessels for the Malaysian Maritime Enforcement Agency (MMEA).

In a filing with Bursa Malaysia, THHE said the JV firm had accepted the letter of award from the Government on Wednesday.

THHE Destini will supply, test and commission the 83-metre vessels, complete with fittings and accessories, under the 42-month contract.

THHE said the deal was expected to contribute positively to its earnings and net assets per share for the financial years ending Dec 31, 2017 through 2020.

In a joint press statement, THHE and Destini said the 83-metre vessels would be the largest vessels to date in the MMEA fleet.

They can patrol Malaysia’s coasts in all weather conditions. The all-weather vessels are also capable of conducting maritime surveillance and interception, search and rescue, environment and pollution control as well as humanitarian assistance and disaster relief.

THHE chief executive officer Suhaimi Badrul Jamil said the contract award marked the start of THHE’s diversification strategy that THHE had put in place to take the company forward.

“We see the shipbuilding and repair industry as providing a stable future for THHE while balancing the volatility of its fabrication business in the oil and gas environment,” he added.