Daya signs North Sea contract worth up to RM440m

by **Cals** Tue 20 Aug 2013, 11:38

Daya signs North Sea contract worth up to RM440m
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Tuesday, 20 August 2013 11:26

KUALA LUMPUR: DAYA MATERIALS BHD [] has signed a seven-year charter party contract worth RM250 million to RM440 million with Norway's Technip Norge AS.

This confirms The Edge Malaysia's earlier report that Daya Materials, an emerging upstream oil and gas (O&G) services provider, could become one of the first Malaysian companies to secure long-term upstream O&G contracts in the Norwegian O&G sector.

In a filing with Bursa Malaysia yesterday, Daya Materials said its sub-subsidiary, Daya OCI (Labuan) Ltd, had signed the contract with Technip. Daya OCI will be appointed contractor for the provision of offshore subsea CONSTRUCTION [] vessel.

The contract also stipulates that Daya OCI provides a range of offshore services on a long-term charter basis for the North Sea and North Atlantic regions.

"Technip is a world leader in project management, engineering and construction for the energy industry. [It encompasses] the deepest subsea O&G developments to the largest and most complex offshore and onshore infrastructures," said Daya Materials.

According to the filing, Daya Materials' wholly owned subsidiary, Daya Offshore Construction Sdn Bhd, will be executing the charter on behalf of Daya OCI.

Daya Materials said the charter is for a period of 100 to 175 days per year for seven years, beginning August 2013 until 2020.

"The contract and the successful implementation of the charter are expected to contribute positively towards Daya Materials' earnings and net assets for the period of the charter."

According to Daya Materials, its board has identified the offshore construction and subsea installation sector as one of the key areas of growth for the company over the next few years.

"The success of the charter will further strengthen Daya Offshore Construction's position as a prominent solutions provider not only in Malaysia, but globally," said Daya Materials.

Daya Materials gained two sen or 5.97% to close at its intraday high of 35.5 sen yesterday. A total of 60.23 million shares were transacted.

This article first appeared in The Edge Financial Daily, on August 20, 2013.