Coastal Sells Vessels for $54 mln

Coastal Group today announced that its wholly-owned subsidiaries, Coastal Offshore, Thaumas Marine and Pleasant Engineering have collectively secured contracts for the sales of three offshore support vessels (OSVs) and two low-end vessels for an aggregate value of approx $54 million.

Apart from the two OSVs which were sold to a repeat customer, the third OSV and two low-end vessels were sold to a new customers. With these latest orders, the total value of the Group’s vessel sales stood at approx $366 million.

Mr Ng Chin Heng, the Executive Chairman of Coastal, commented: “Current crude oil price remains stable underpinned by the recovery momentum in the United States and the anticipated shift out of recession in the Eurozone. We are quite optimistic with the current OSV market as stable oil price will continue to spur oil majors to increase capex spending on exploration and production activities, especially for drilling activities. We believe there are more OSV needed to support the 2015-delivery rigs.”

Mr Ng further added: “With the current strong vessel sales order book and the recent win of jack-up gas compression service unit charter contract, FY2014 shall be a busy year to Coastal Group. In addition, currently we are in the progress of clinching a contract for our maiden jack-up rig which is scheduled for delivery in quarter three this year. We are quite optimistic on clinching our first jack-up rig contract this year.”

All of these vessels are expected to be delivered in 2014 and 2015.

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coastal, March 28, 2014