PETALING JAYA: Coastal Contracts Bhd
’s newly secured liftboat charter contract in the Middle East will support the group’s fleet utilisation, but it will only marginally uplift earnings, says TA Research.
The research house, in a note to clients, said it views the RM7.2mil contract win as “mildly positive”.
Coastal’s management stated the contract was secured with a new charterer following the expiry of its previous contract in end-April, adding that this showed successful redeployment with minimal downtime.
The 90-day liftboat charter contract in the Middle East is expected to commence by May 5, 2026.
TA Research said: “Based on the disclosed contract value, the implied bareboat charter rate is about RM80,000 per day, slightly lower than RM83,000 per day achieved previously.
“However, this is partly mitigated by a longer charter period, which helps sustain overall revenue contribution.”
The research house said Coastal’s contract win was in line with its financial year 2026 utilisation assumptions. TA Research, which kept its forecasts unchanged, said the contract announcement is broadly in line with its expectations and does not materially alter earnings assumptions.
The research house has also maintained its “buy” call on Coastal with a target price of RM1.97 per share.
