Coastal Contracts Bhd pass year activities

2003


Shipbuilding

• Increase emphasis of manufacturing higher value vessels

• Expanding and enhancing the existing tug boat and barge manufacturing operations


Chatering

• Shipping of commodities and raw materials

• Indonesia remains the Group’s main market for vessel chatering activities

Prospects

• Increase enquiries and orders from new vessels and chatering services.



2004

Shipbuilding

• Revenue of shipbuilding 61%

• Focus to building vessels of larger capacity and higher specification


Chatering

• Lower revenue due to costs of conversion and modification to several vessels in the fleet in preparation for long term charter to foreign customer


Prospects

• Demand for small and medium size offshore support vessels is on the rise

• Concentrate on building more of such vessels to cater the demand

• Aim to benefit coal transportation business in Indonesia (main source for M’sia)



2005

Shipbuilding

• Revenue of shipbuilding 53%

• Due to strong demand for high-powered tugboats and barges of greater capacity marine transportation

• Cost depends on steel-related products



Chatering

• Resilience, reliable and stable income

• Consistently high average utilization (85%)


Prospects

• O&G exploration and productions activities by oil major are likely to pick up steam

• Sell one offshore vessel in 2006

• 5 other firm orders from Middle East and Western Europe

• By 2010, M’sia is expected to consume 20 million tones of coal which the supplier from Indonesia and Australia


2006

Shipbuilding

• Revenue of shipbuilding 66%

• Revenue driven by shipbuilding division, riding high on the O&G sector’s bullish wave

• Sold of 3 units of offshore support vessels

• Underscore the group decision in 2003 to venture into fabrication of higher value OSVs was certainly incisive and well-timed


Chatering

• Remain stable grow 10%


Prospects

• The O&G industries remain stay at upbeat


2007

Shipbuilding

• Revenue of shipbuilding 86%

• Driver by offshore support vessels

• Delivery 6 units of OSV & 3 units still under construction

• Own 140 vessels


Chatering

• Remain stable grow 10%


Prospects

• The O&G industries remain stay at upbeat

2008

Shipbuilding

• Revenue of shipbuilding 93%

• Delivery of 8 units OSVs (35 vessels in total)

• Expect 10 – 15% reduction in global fuel exploration and production expenditure and hence the concomitant offshore services


Chatering

• Higher fleet utilization rate and inflow of a new stream of freight income


Prospects

• International Marine Organization (IMO) continues to impose stringent regulation on marine vessels, so high demands for young and sophisticated OSV

• Need to replace old OSV


2009

Shipbuilding

• Revenue of shipbuilding 95%

• Remain good revenue due to pre-book order.

• Return of enquiries and interests in its OSVs and other vessels, order slowly pick up again

• Deliver 29 high-value vessels

• Operated 45 young fleet vessels


Prospects

• Fundamental of the offshore oil and gas industry appear more positive

• Demand of oil production

Source: Coastal Contracts Bhd annual report 2003 to 2009