XMH bags $3.6m in marine engine contracts

One of the contracts is for more than 24 units of Mitsubishi marine engines, with XMH expecting another 10 units to be secured in the next two months. The Singapore-based company believed that the contract win points to a breakthrough in the Vietnamese market.

“This breakthrough reduces any over-reliance the group has on the Indonesian market, traditionally where our main business have been conducted, as it has slowed down significantly in recent times,” said Elvin Tan Tin Yeow, chairman and ceo of XMH.

The second contract is for a low speed Akasaka main engine, also under Mitsubishi's licensing, for use in a Pertamina tanker.

Pertamina is looking to embark on more locally-built tankers with cabotage laws in place, and XMH is looking to secure more contracts moving forward. Delivery for the Pertamina contract is expected to be around December 2014.

Meanwhile, XMH was ordered by the Singapore High Court to pay Pacific Marine & Shipbuilding a sum of SGD3.47m ($2.75m) in damages over the supply of four defective marine propulsion units under a contract signed in June 2010.

Singapore-listed XMH is currently considering its options with regard to an appeal against the decision of the court.