Icon Offshore unit bags RM72.06mil contract

  • Business
  • Friday, 10 Mar 2017

KUALA LUMPUR: Icon Offshore Bhd’s unit Icon Bahtera (B) Sdn Bhd has secured a RM72.06mil contract for the chartering of accommodation workboat within the group’s fleet of vessels.

In a filing with Bursa Malaysia, it said the long-term charter contract was awarded by SPHI Marine Sdn Bhd, a company operating in Brunei.

“The contract shall commence on March 1, 2017 being the date of hire and shall continue for a period of three years with an option for an extension period of up to two years, of which, further extensions shall be on yearly basis,” it said.

Icon Offshore said the contract was expected to contribute positively to the earnings and net assets of the group for the financial year ending Dec 31, 2017 and beyond.

The company is the owner and operator of one the largest fleet of offshore support vessel (OSV) in the region.

A London-based industry data provider VesselsValue projected that 2017 will be a record year for the delivery of OSVs.

The online vessel valuation and maritime and offshore data provider said the total number of OSVs scheduled for delivery is 465, up from 139 last year, while the highest number ever recorded before was 396 in 2009.

According to VesselsValue, Malaysian owners have the largest number of OSVs currently on order with 109 vessels, followed by Singapore (96); China (36); the United States (28); and United Arab Emirates (24).

The top shipowner in the world who has the highest number of OSVs currently on order is a Malaysian company, Nam Cheong International Ltd, which now has 56 vessels, it said in a statement.

This is double the second rank, another Malaysian company, Coastal Contracts, which has 28 OSVs on order, said the data provider.

OSVs include anchor-handling tug supply vessel and platform supply vessel.

VesselsValue said the offshore industry is struggling through historic lows of asset prices, while many offshore bankruptcies are being announced around the world.

“Problems began with the drop in oil prices, lowering the demand for research projects. Now the industry is facing a huge amount of oversupply of vessels.

“To further exacerbate the problem, 2017 sees a record number of OSVs scheduled to be delivered,” it said. — Bernama

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