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Reports Malaysia

Malaysia stock market and companies daily report (June 19, 2014)

June 19, 2014, Thursday, 05:36 GMT | 00:36 EST | 09:06 IST | 11:36 SGT
Contributed by Shares Investment

Coastal Contracts Bags RM180m Vessel Sale

- Coastal Contracts’ subsidiaries, Coastal Offshore (Labuan) and Thaumas Marine, have secured contracts for the sale of three offshore support vessels (OSV) and three tugboats valued at RM180 million.

- The vessels are expected to be delivered by end-2015 and would contribute positively to the firm’s financial performance.

- The new contracts lifts Coastal’s order book to RM2.4 billion, of which, half is made up by vessels’ sales with the balance derived from the company’s first jack-up gas compression service unit charter contract for Petroleos Mexicanos.

Significance: Coastal Contracts’ management foresees higher OSV demand in the medium term on the back of both shallow and deep-water offshore activity.

Dagang Nexchange Forays Into O&G

- In a bid to move into the oil and gas (O&G) industry, Dagang Nexchange bought the entire stake in OGPC and OGPC O&G for RM203 million.

- The two acquisition targets provide equipment and services for O&G, petrochemical and power industries.

- Of the purchase sum, RM100 million will be paid in cash while the balance will be satisfied via the issuance of 396.2 million Dagang shares at RM0.26 apiece and 198.1 million warrants.

Significance: The proposed purchase, expected to be completed by 1Q15, would provide Dagang with an additional core business on top of its existing information and communications technology segment.

Eversendai Wins Contracts Worth RM152.1m

- Eversendai Corporation has clinched new projects worth RM152.1 million in Qatar and India.

- In Qatar, Eversendai will provide the fabrication and supply of structural steel and the installation of mechanical works for the Gabbro Terminal Expansion project, worth RM78.7 million, as well as works on the Skylight Steel Package 2 of the Mall of Qatar, worth RM16.3 million.

- Within India, Eversendai will supply fabrication structural steel works for Reliance Industries’ J3 Project, worth RM57.1 million.

Significance: The wins bring Eversendai’s new contracts secured year-to-date to RM903.5 million while its current order book stands at RM1.7 billion.