Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on July 12, 2017

KUALA LUMPUR: Sealink International Bhd has bagged a charter contract for a unit of its safety standby vessels and is disposing of two ageing vessels for a combined proceeds of RM52 million.

Sealink said the vessels’ disposal is part of the group’s strategy to continually modernise and upgrade its fleet of vessels. “Sealink Group constantly sells older vessels and replace them with newer vessels in line with the oil and gas (O&G) industry’s changing requirements,” it said in a filing with Bursa Malaysia yesterday.

The charter contract is from an independent O&G firm, while the sale of vessels is to a local company and an existing overseas client, according to the filing.

“The charter is for three years, commencing in the second quarter of 2017. It is expected to contribute positively to Sealink’s earnings and net tangible assets for the financial year ending Dec 31, 2017 (FY17) and beyond,” it said.

“The sale [of vessels] is expected to contribute positively to Sealink Group’s earnings and cash flow for FY17. Notwithstanding this, the aforementioned is not expected to have any material effect on the share capital and the company’s shareholding structure,” it added. It plans to use the proceeds from the sale of vessels for working capital purposes.

Currently, Sealink operates a fleet of 34 vessels. It also owns two shipyards in Miri, Sarawak. 
 

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