KUALA LUMPUR (July 3): Marine construction services group Benalec Holdings Bhd is disposing of two of its sand carrier vessels for US$3.82 million (RM15.82 million) to improve its cash flow amid the softening of the domestic and regional maritime industry.
In a filing with Bursa Malaysia today, Benalec said its 51%-owned indirect subsidiary, Ocean Pacific Ltd, is selling the vessels to Regiontrade Sdn Bhd.
The assets were purchased by Ocean Pacific in January 2015 and February 2016, respectively.
Due to the current market environment of the domestic and regional maritime industry, Benalec said there has been a softening in demand for vessels which in turn negatively affects the group’s vessel chartering business
Hence, the disposal of the assets, Benalec said, provides an avenue to monetise the assets and crystallise the value of the vessels at a reasonable price, while at the same time improve the cash flow of the company.
Benalec added that the proceeds arising from the disposal would be utilised for the working capital of the group.
The disposal is expected to be completed within the third quarter of 2019.
Shares of Benalec closed up 0.5 sen or 2.86% today at 18 sen for a market capitalisation of RM152.84 million.