KUALA LUMPUR, Coastal Contracts Bhd said its wholly owned subsidiary, Elite Point Pte Ltd, has secured a new liftboat charter contract worth approximately RM12.8 million, marking another addition to the group’s growing portfolio in the offshore support services segment.
In a filing with Bursa Malaysia, the group said the new 120-day charter will commence immediately following the completion of its previous contract, which ended on Sept 29 after the charterer decided not to exercise a one-year extension option.
The new agreement also includes an optional extension period, allowing for potential continuity of services should the charterer require it. Coastal Contracts noted that the charter is expected to contribute positively to the group’s earnings and net assets for the financial years ending Dec 31, 2025 (FY2025) and FY2026.
“The contract underscores Coastal’s proven capabilities and reliability in delivering quality offshore marine support, as well as our ability to secure repeat and new charters despite a competitive market environment,” the group said in its statement.
It added that the primary risks associated with the contract are operational and execution-related, which are normal for projects of this nature in the oil and gas industry. The company said it has implemented comprehensive risk management practices to mitigate these risks.
Coastal Contracts emphasised that none of its directors or substantial shareholders have any direct or indirect interest in the agreement, which the board believes is in the best interest of the group.
The group has remained focused on expanding its offshore chartering and shipbuilding activities, capitalising on the recovery in the oil and gas sector and increasing demand for liftboats, which are widely used in offshore maintenance and well-servicing operations.
At market close on Wednesday, shares of Coastal Contracts slipped one sen or 0.8% to RM1.19, valuing the company at RM664.9 million. The counter has declined 21.7% year to date.
