Sealink wins charters, vessel sale contracts

Saturday February 27, 2010
Sealink wins charters, vessel sale contracts

KUCHING: Miri-based Sealink International Bhd has secured contracts for two long-term charters of its offshore support vessels and the sale of a similar vessel to a foreign buyer. The contracts are worth a total RM58mil.

The charter contracts were awarded to wholly-owned subsidiary Sealink Sdn Bhd while the vessel sale was secured by Sealink Engineering and Slipway Sdn Bhd, another 100%-owned subsidiary.

One contract is for a two-year charter of a utility vessel, beginning this month. The vessel was built by wholly-owned unit Sealink Shipyard Sdn Bhd, Sealink said in a filing with Bursa Malaysia on Thursday.

It said the second contract was for a one-year charter of an offshore supply vessel, starting in September. This vessel is now being built by Sealink Engineering and Slipway.

The company said the sale of the offshore support vessel was expected to be concluded in the next three months.

The (three) contracts are expected to contribute positively to the earnings and net assets of Sealink for the financial year ending Dec 31 (FY10), it added.

Sealink, which owns two shipyards in Miri capable of building up to 17 vessels a year, now operates a diverse fleet of 33 offshore support vessels used mostly in the oil and gas industry.

The company, one of the largest tug and barge operators in Malaysia, plans to increase its fleet to 40 vessels by end 2010.

For the fourth quarter ended Dec 31, Sealink recorded a net profit of RM8.26mil on a turnover of RM26.1mil, down from RM7.97mil and RM42.3mil respectively in the previous corresponding period.

For FY09, its net profit was 13.5% lower to RM50.1mil as revenue dropped 18.4% to RM192.8mil compared with RM57.9mil and RM236.3mil respectively in FY08.