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Coastal Contracts makes less in first three months

Coastal Contracts makes less in first three months
Malaysia’s OSV fabricator Coastal Contracts has posted lower earnings for the first three months of this year, impacted by the sluggish state of the global offshore marine market.

Kuala Lumpur-listed Coastal Contracts registered a net profit of MYR16.37m ($4.02m) during the three-month period, down sharply from the gain of MYR65.91m in the same period of 2015.

Revenue for the quarter also fell to MYR198.7m from MYR350.95m in the year-ago period, which saw stronger performance due to the timing and higher number of OSV deliveries.

As at 31 March 2016, the group’s orderbook stood at approximately MYR2.5bn and of this OSV fabrication made up MYR1bn for progressive deliveries until 2017. The remaining comprised the MYR1.5bn jack up gas compression service unit charter to Mexico’s Pemex up until 2027.

Ng Chin Heng, executive chairman of Coastal Contracts, said the long term charter to Pemex provides the group with “a substantial stream of recurring income to mitigate ongoing challenges in the OSV market”.