The need for more sophisticated OSVs is also on the rise due to the anticipated upbeat exploration and production activities, the Malaysia-based shipbuilder said.
“The group will focus on building and selling more technologically advanced and deepwater-capable OSV that can withstand harsher environment. The management expects sustained recovery in the OSV market soon, especially for higher-end OSV,” the company commented.
Coastal Contracts also noted that the current global jack-up rig utilisation rate is “quite encouraging”, especially in the US Gulf of Mexico. This will have a positive spillover effects on charter rates in Southeast Asia.
“In addition, majority of the current global fleet was delivered in 1980s and the industry will soon face a significant challenge in replenishing its aging equipment. In view of the above, the management expects the jack-up rig market will witness high growth in the next few years,” it said.
Meanwhile, Kuala Lumpur-listed Coastal Contracts posted a stronger third quarter ended 30 September 2013. Net profit during the quarter rose to MYR39.51m ($12.21m), up 30% compared to MYR30.53m in the corresponding period of last year.
Revenue also rose to MYR194.65m from MYR177.14m a year ago.
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