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Coastal Contracts Bhd, a shipyard
specializing in building offshore support
vessels for the oil and gas sector, sees bright
prospects for its shipbuilding and repairing
business, driven by growing demand amidst a
favorable global macroeconomic environment.
The Sandakan-based company listed on the Bursa
Malaysia has posted RM159 million turnover, a
554.5 per cent growth for the financial year
ended 31 Disember 2006.
“With crude oil hovering at the USD60 per barrel
price level, oil majors around the world have a
compelling reason to further speed up
exploration and production activities to meet
the soaring global consumption demand for oil
and gas. This factor, coupled with the
spill-over demand for offshore support vessels,
will translate into promising opportunities for
Coastal Group,” said the executive chairman of
Costal Contract Bhd, Ng Chin Heng
He said the Board is cautiously optimistic of
securing more contracts to add to the Group's
current order book especially in the offshore
support vessel category, as well as reaping
greater returns from its chartering division
through higher utilisation of the Group's fleet
in energy transportation and in various O&G
support services.
With 62 vessels currently under different stages
of construction, the Group is ensured of a
steady supply of vessels to tap the anticipated
sturdy demand in the future.
Elaborating the company’s financial performance
the Executive chairman Ng Chin Heng said the
revenue for shipbuilding and ship repair
division rose dramatically to close to 80 per
cent of the total revenue from 50 per cent
during our listed exercise.
Overall the shipbuilding division has
contributed some RM143.43 million in 2006.
“In fact the fourth quarter revenue increased by
59 per cent from RM34.4 million in the preceding
quarter to RM54.6 million in the current
quarter. Compared with the same period last
year, revenue for the current quarter has jumped
over five-fold from RM10.2 million. The
substantial increase in revenue was credited to
the sales of a total of 7 units of vessels, as
against 4 units in the last quarter and 2 units
in previous year's corresponding quarter,” said
Ng.
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