KUALA LUMPUR (May 27): Icon Offshore Bhd's Brunei-incorporated subsidiary Icon Bahtera (B) Sdn Bhd has secured another long term time charter contract, valued at approximately RM99 million, with Zell Transportation Sdn Bhd, a company based in Brunei.

In a filing with Bursa Malaysia today, Icon Offshore said the contract involves the chartering of the second accommodation workboat within the Icon fleet of vessels, namely Icon Valiant, with Zell.

"The charter period under the time charter contract commenced on April 10, 2015, and shall continue for a period of 2 years from the charter period, with an option for an extension of one year," read Icon's announcement.

Under the time charter contract, Icon Bahtera is required to provide, amongst others, an offshore support vessel (OSV), including the provision of time charter of the accommodation workboat and crew, to Zell.

Icon Offshore said the contract is expected to contribute positively to its earnings and net assets for the financial year ending Dec 31, 2015(FY15), and beyond.

In a separate filing with Bursa, Icon Offshore, which was listed on the local bourse in June last year, saw a net profit of RM2.71 million or 0.2 sen per share in its first quarter ended March 31, 2015 (1QFY15), down 86.1% on-year from RM19.5 million, due to higher payroll costs and foreign exchange losses.

The higher payroll costs was a result of higher headcount to support fleet expansion.

The OSV provider's 1QFY15 revenue was at RM63.59 million, down 20.6% from its 1QFY14's RM80.07 million, due to a lower fleet utilisation rate in 1QFY15.

"Whilst the industry outlook is expected to remain soft, significant portion of the group's orderbook are long term (more than one year) in nature, and the group remains focused to ensure its utilisation rate is maintained through competitive tendering for domestic and regional work. 

"In view of this, the board of directors remain cautios on the group's financial results for the financial year 2015," it said.

Icon Offshore closed 1.5 sen or 2.75% lower at 53 sen today, with a market capitalisation of RM623.91 million.