KUALA LUMPUR (April 5): Icon Offshore Bhd has received contracts and a work order to provide vessels to three Petroleum Arrangement Contractors (PACs) and Petronas Carigali Sdn Bhd.

Specifically, its subsidiary Icon Offshore Group Sdn Bhd (IOGSB) had received five contracts to provide offshore support vessels for the production operations of the PACs in letters dated early September last year, and a work order for the provision of a straight support vessel to Petronas Carigali, said the group in separate filings to Bursa Malaysia.

The group was only given clearance from the PACs and Petronas Carigali to announce the contracts and work order on April 2.

According to a bourse filing, IOGSB's contracts with the PACs are on a call-out basis and are valid for three years, with an extension option of one year plus one year.

The contracts commenced when the vessels were on hired between September to December last year.

"The contracts are expected to contribute positively to the earnings, order book and net assets of ICON for the financial year ending Dec 31, 2019 and beyond. Notwithstanding this, the contracts are not expected to have any material effect on the share capital and shareholding structure of ICON," said the group on the impact of the five contracts on its financial performance.

Meanwhile, IOGSB had also bagged a straight supply vessel work order, dated March 4, from Petronas Carigali Sdn Bhd.

The work order is for the Tanjung Pinang 2 vessel, which started on March 7, and is set to last 180 days, with an option to extend for another 180 days.

The work order is worth RM8 million and is set to positively contribute to the group's earnings, order book and net assets for the financial year ended Dec 31, 2019 (FY19) and beyond.

At Bursa's midday close today, shares in Icon Offshore were 5% or half a sen higher at 10.5 sen — with 2.61 million shares traded — giving the group a market capitalisation of RM123.6 million.