Sealink on expansion path with nine new OSVs planned

Sealink corporate affairs manager Ting Hui told local media that these vessels would cost around MYR200m ($60.9m). “These new vessels are at various stages of construction. Whatever we build is for inventory as we are quite different from other local shipbuilders. We will only sell the new vessels to external customers if the prices are good,” he was quoted as saying.

Sealink operates on a slightly different model to other shipbuilders where their leasing arm operates many of the vessels it builds. With a current fleet of 41 vessels, the group has a robust ship-chartering business, which it will continue to leverage on to plough back investments in new vessels. Sealink has a positive view of the Oil & Gas industry, and has embarked on a new shipbuilding programme with a budget of about $100m, where its two Miri shipyards can build up to 17 vessels a year.

The investment of about $37m each in the two hybrid vessels is reaping about MYR12m in profits this year, said Ting. He added that with the rising OSV demand in mind, the group was ramping up the utilisation level of its shipyards and hoped to achieve optimal production in 12 months.

Sealink is looking at new designs as the shipbuilding division moves towards building newer and larger vessels for deepwater operations.

Ting noted that national oil company Petronas continues to maintain high capex levels in addition to the new enhanced oil recovery projects (EOR) awarded and being finalised.

Many of the new Petronas platforms and EOR projects are expected to come on stream in the next 12 to 24 months, and Ting said more OSVs would be needed during the installation and commissioning phase. “Now it is the fabricators of offshore platforms who are benefitting. Once (new) offshore production activities kick in in the next two to three years, service providers will benefit as more offshore supply vessels and anchor-handling tugs will be required,” he added.

Ting also highlighted a shortage of certain types of vessels for the oil and gas industry. “We can see supply is very restrictive, especially utility vessels, in the market,” he concluded.

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