Icon Offshore bags RM39m AHTS contract from Shell

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KUALA LUMPUR (June 10): Icon Offshore Bhd has bagged a RM39 million contract to provide anchor handling tugs supply (AHTS) to Sarawak Shell Bhd/Sabah Shell Petroleum Co Ltd (Shell).

In a filing with Bursa Malaysia today, Icon said the contract was awarded to its wholly-owned subsidiary Icon Offshore Group Sdn Bhd on May 3, but was only allowed to release the announcement today.

The term of the contract is more than two years or 825 days, with an extension option of up to two years, with one-year extension period each.

"The commencement date for the contract was April 6, and the vessel was onhired on the same date," it added.

Icon said the contract value of RM39 million is inclusive of the optional extension period and is expected to contribute positively to the group's earnings, order book and net assets for the financial year ending Dec 31, 2019 (FY19) and beyond.

In a separate statement today, Icon acting chief executive officer Captain Hassan Ali said the group has been working hard to balance its cost-optimisation efforts and at the same time maintaining the rigorous Health, Safety, Security and Environment standard that is critical in this business.

“As a result, we have managed to maintain our service quality, reliability and overall competitiveness of our fleet which will hold us in good stead as we execute the contract and compete for new ones,” he added.

Icon shares closed unchanged at 8.5 sen today, with 214,300 shares done, bringing a market capitalisation of RM100.06 million.