KUALA LUMPUR (June 28): Icon Offshore Bhd has bagged contracts valued at RM275 million from oil and gas (O&G) companies to provide offshore support vessels (OSVs) for their production operations in Malaysian waters.
In a statement today, Icon said the contracts were clinched via its wholly-owned subsidiary Icon Offshore Group Sdn Bhd (IOGSB). The long term contracts are for a primary period of three years, with an extension option of up to two years of one year each, it added.
"The options will only be exercised at the end of the firm period, upon approvals obtained from Petronas Carigali Sdn Bhd and the O&G companies.
These contracts are expected to contribute positively to the group's earnings, order book and net assets for the financial year ending Dec 31, 2018 (FY18) and beyond.
In a separate filing with Bursa Malaysia today, Icon said IOGSB has received a conditional RM106 million award to provide two platform supply vessels to ExxonMobil Exploration and Production Malaysia Inc for its production operations.
"The commencement date of the contracts in respect of each vessel will be the effective date of hire of the vessel, as stated in ExxonMobil’s issued order, which will be no later than Aug 1," the filing added.
The contracts are expected to contribute positively to the group's earnings, order book and net assets for FY18.
Meanwhile, Icon acting chief executive officer Captain Hassan Ali said the group is ready to take advantage of the improving market condition, as it has taken measures to revamp its business model, restructure its financial commitments and reduce its operation cost.
"Our internal transformation has enabled us to become a strong partner of value and to deliver improved shareholder value over the long term,” Hassan Ali said in the statement.
“We are aggressively promoting our services to the industry players, as we believe that we can provide the best services through our safe and reliable operational and financial discipline. We remain committed to enhance our efficiency, in order to meet the expectations and requirements of the O&G companies,” he added.
Icon shares closed down 0.5 sen or 4.17% to 11.5 sen today, giving it a market capitalisation of RM135.38 million.