Coastal Contracts up after RM1.24bil job deal

KUALA LUMPUR: Shares of Coastal Contracts rose at mid-morning on Tuesday after its unit bagged a RM1.24bil charter contract for a jack-up gas compression service unit from a group of Mexican companies.

At 11.11am, its shares rose seven sen to RM4.16 with 508,300 shares done between RM4.15 and RM4.25.

The FBM KLCI was up 3.99 points to 1,820.13. There were 321 gainers, 288 decliners and 275 counters unchanged.

Coastal Contracts said on Monday the contract, secured via Thaumas Marine Ltd is for eight years with extension option up to 12 years. The contract is expected to start by the second half of 2015.

Coastal Contracts said these Mexican companies, had in turn inked a gas compression service contract with Mexico's state-owned petroleum company Petroleos Mexicanos.

"The charter contract valued at approximately RM1.24bil is expected to contribute positively to the revenue stream, earnings and net assets of Coastal Group for the financial year ending Dec 31, 2015 and the financial periods thereafter for the duration of the charter contract," it said.