KUALA LUMPUR: Icon Offshore Bhd has bagged two long-term contracts worth RM55 million from an oil major to supply two anchor handling tugs/supply vessels.

In a filing with Bursa Malaysia yesterday, Icon Offshore said its wholly-owned subsidiary, Icon Offshore Group Sdn Bhd, had received two letters of award for the proposed jobs.

Under the contracts, the company is required to provide, among others, transportation of supplies from supply bases to drilling rigs/platforms and vice versa for the oil major.

“The long-term contracts shall be effective from July 5, 2015, and shall continue for a period of two years, with an option for an extension of one year,” Icon Offshore added.

It said the value of RM55 million is inclusive of the extension period, and is expected to contribute positively to the group's earnings and net assets for the financial year ending Dec 31, 2015, and beyond.

As at March 31, 2015, the group’s order book stood at RM785.6 million, of which RM528.6 million (67.3%) is firm and RM246.7 million (31.4%) is extension options.

This article first appeared in The Edge Financial Daily, on July 15, 2015.