This article first appeared in The Edge Financial Daily on June 11, 2019

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

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

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

“The commencement date of the contract was April 6 and the vessel was on hire 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 and beyond.

In a separate statement, Icon’s acting chief executive officer, Captain Hassan Ali, said the group had been working hard to balance its cost-optimisation efforts and at the same time maintaining the rigorous health, safety, security and environment standards which are 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 said.