Daya Materials signs contract with Swiss-based company

by **Cals** Thu 17 Oct 2013, 10:07

Business & Markets 2013

Written by Fatin Rasyiqah Mustaza of theedgemalaysia.com

Thursday, 17 October 2013 09:51

KUALA LUMPUR: Daya Materials Bhd has entered into a charter party contract with Swiss-based Allseas UK Ltd with an estimated contract value of up to RM11.8 million for a period of 20 to 30 days.

The contract, won via its wholly owned subsidiary Daya Offshore Construction Sdn Bhd, is for the provision of an offshore walk to work subsea construction vessel, together with a range of offshore services for Britain’s North Sea region.

Scheduled to commence in October, Daya Materials will deploy its newly built offshore subsea construction vessel (OSCV), Siem Daya 1, on its second charter.

In August, Daya Materials signed a seven-year charter party contract with Norway’s Technip Norge AS for RM440 million.

The two contracts combined give Siem Daya 1 an order book of up to RM451.8 million.

“We are working hard on continuously bidding for additional contracts for Siem Daya 1,” said Daya Materials CEO Datuk Mazlin Junid in a press statement.

Securing these two contracts, he said, provides the group with a promising outlook which will progressively build the company’s profile within the oil and gas industry, not only in Malaysia but globally.

In an announcement to Bursa Malaysia, the group said its board has identified the offshore construction and subsea installation sector as one of the key areas of growth for the Daya Materials group of companies over the next few years.

“The success of the charter will further strengthen Daya Offshore’s position as a prominent solution provider,” it said.

The group has developed an in-house team of subsea experts and offshore engineers who have extensive experience and competence to execute such projects.

“The contract and the successful implementation of the charter are expected to contribute positively towards Daya Materials’ group earnings and net assets for the period of the charter,” it said.

In addition, the group is expecting the delivery of its second OSCV, the Siem Daya 2, in December.

The group saw an 18% rise in net profit to RM6.7 million in its second quarter ended June 30 this year, from RM5.7 million in the previous corresponding quarter. Revenue was RM131.1 million against RM75.4 million.

This article first appeared in The Edge Financial Daily, on October 17, 2013.