KUALA LUMPUR (March 25): Destini Bhd's Singapore-based subsidiary Vanguard Composite Engineering Pte Ltd has won a RM16 million contract to supply eight units of its newly developed self-propelled hyperbaric lifeboat (SPHL).

In a statement today, the group said the lifeboat, which was developed in partnership with UK-based JFD Ltd, sets a world-class standard in safety for the commercial diving market.

Under the contract, Vanguard will supply the vessels to Singapore-based Ultra Deep Solutions Pte Ltd and Flash Tekk Engineering Pte Ltd, a builder and operator of ultra-deep heavy construction vessels and diving systems for the offshore industry.

The first units are expected to be delivered by early 2017, with the balance of the units to be released in phases.

"Our partnership with JFD Ltd, a renowned global player in the commercial diving market, is testament to Destini's growing presence and leading position in developing world-class products for the marine sector.

"We have received our maiden contract after investing in R&D activities over the past few years and we are very pleased that our efforts have come to fruition," said Destini managing director Datuk Rozabil Abdul Rahman.

He added that the group is optimistic the new boats will gain a high market acceptance amongst industry players, in line with more stringent safety standards by regulatory bodies such as the International Marine Contractors Association and International Marine Organisation.

"As the industry adapts to new guidelines and upgrades existing evacuation systems, we estimate that there will be demand for approximately 20 to 30 SPHLs per year.

"To the best of our knowledge, Vanguard is one of only two companies globally that have the capability to produce such lifeboats. Hence, we are in a strong position to capture many market opportunities with our commitment to quality, delivery and value for money," Rozabil said.

To recap, the marine division contributed approximately 54% to Destini's total revenue for the financial year ended Dec 31, 2015.

Destini shares rose one sen or 1.82% to 56 sen at 4.23pm, giving a market capitalisation of RM515.39 million.