|
Deepwater oil and gas exploration and production activities by oil majors
are likely to pick up steam going forward with the surging demand and tight
supply situation which has pushed crude prices to new highs in recent
months.
“This will have tremendous spill-over effects on the offshore support
vessels market, prompting a glossy outlook for this sector in the years
ahead,” said the executive chairman of Coastal Contract Bhd, Ng Chin Heng.
Since the beginning of this year, Coastal Group has booked the sale of one
unit offshore support vessel. Five other firm orders have also been placed
with Coastal Group from customers from the Middle East and Western Europe.
Three of these vessels are expected to be delivered in 2006 financial year
said in the 2005 Annual Report.
The favourable conditions of the region's energy and oil transportation
markets have led to positive flow-through opportunities for Coastal group
which involved in the shipbuilding and ship operations sector. In this
regard, the sales of vessels broke new ground to carry the Group's revenue
over the RM100 million-mark said Ng.
The revenue contribution of the Shipbuilding Division was RM85.7 million, a
notable increase of 63 per cent from RM52.7 million in the previous year.
This increase was a reflection of the strong demand for high-powered
tugboats and barges of greater capacity on account of sturdy marine
transportation activities in the region. Such achievement was attributable
to the Group's sound product quality and reliability as we relentlessly pay
close attention to customers' requirements and market changes.
With numerous platforms reported to be installed in Malaysian waters over
the next three to five years there is a correspondingly greater need for a
wider range of support services to facilitate the endeavour.
At the chartering front, with heightened efficiency driven up by the
division's renewed fleet, the Group will commit a higher ratio of its fleet
to the medium and long term charter business with lower portion operating in
the spot market. Also, by 2010, Malaysia is expected to consume 20 million
tonnes of coal a year, where much of the supplies will be derived from
Indonesia and Australia.
Given the sound knowledge and extensive experience in the maritime
transportation business, Coastal Group is primed to capitalise on any
prospects that come its way. |
