30 May 2014: Icon Offshore to add 7 vessels to fleet

KUALA LUMPUR: Malaysia's Icon Offshore Bhd, which offers support services to oil platforms, plans to add seven more vessels to its 32-strong fleet by the end of next year.

Icon Offshore to add 7 vessels to fleet

KUALA LUMPUR: Malaysia's Icon Offshore Bhd, which offers support services to oil platforms, plans to add seven more vessels to its 32-strong fleet by the end of next year.

Chief executive officer Dr Jamal Yusof said the company has six platform supply vessels under construction and is in the final stage of negotiations for the construction of another one.

"We have commissioned international ship builders such as Guangzhou Shunhai Pte Ltd, Labuan Shipyard and Engineering Sdn Bhd and Grade One Marine Shipyard Sdn Bhd to build these vessels," he told reporters at a press conference following its prospectus launch.

Icon Offshore, en route to a listing on the Main Market of Bursa Malaysia on June 25, aims to raise about RM1 billion through its initial public offering.

Jamal said the company's fleet expansion programme is focused on the construction of larger vessels which are better equipped to operate in deeper water and adverse weather conditions.

"We are looking at not only increasing the number of vessels but also adding to those that can operate in deeper waters," he added.

The offshore support vessel (OSV) company is also solidifying strategic investments in new technology access to demonstrate its ability to be an innovative service provider.

Looking ahead, Jamal said the company expects more contracts from Saudi Arabia, the United Arab Emirates and Qatar.

"There are still bids coming out for various kinds of offshore support vessels from Brazil and Africa," he said.

Asked on the company's plan in three years, he said it all depends on the global economy, but added although more new projects are coming up, the company is taking a cautious approach.

"We are not reckless to invest so fast," added Jamal.

The company has a strong order book of long-term contracts of RM500 million and is also in very close negotiations with clients to obtain more jobs.

Icon Offshore, ranked among the top three OSV companies in Malaysia with an annual turnover of RM270 million, has proven it can operate profitably overseas.

"For 2011, 2012 and 2013, our compound annual growth (CAGR) rate for revenue has always been around 20 per cent, and we hope to maintain the same kind of CAGR growth," said Jamal. -

Source from: Business Times

Posted on : 30 May 2014