Miclyn Express Offshore’s 1H FY14 Results, market outlook, finance update and summary of company performance amid varied market conditions. To download click here
Miclyn Express Offshore Ltd. (“MEO” or “the Company”) and its wholly-owned subsidiary PT. Loh & Loh Construction Indonesia (the Vendor) announced that the Company have entered into a conditional sale and purchase agreement dated Jan. 24 2014 (the Agreement) with ASL Marine Holdings Ltd. (“ASL”) and its wholly-owned subsidiary, PT. Sukses Shipyard Indonesia (the Purchaser), pursuant to which the Purchaser has agreed to acquire the property and fixed assets in respect of a shipyard (the Sale Assets) from the Vendor, for the cash consideration of $20.0 million (equivalent to approximately SGD 25.6 million based on the exchange rate of $1: SGD 1.279) (the Acquisition).
The Parties are in the midst of seeking regulatory approvals and confirmations for the Acquisition, and intends to complete this transaction as soon as possible.
MEO Resolution : Miclyn Express Offshore (MEO) is pleased to announce the successful completion and naming of “RESOLUTION”, she is a 70m DP2 5000 BHP ROV support vessel, and will be chartered by Seascape Surveys for duration of 3 years.
(L-R) Diederik De Boer, CEO Miclyn Express Offshore, Sandra Hutabarat, Lady Sponsor, Peter Reichlmeier, Managing Director Seascape Surveys.
Miclyn Express Offshore (ASX:MIO) (“MEO” or the “Company”) is pleased to announce that it has executed a Sale and Purchase Agreement to acquire 50% of the shares in Uniwise Towage Limited (“UWT”) from Svitzer Asia Pte. Ltd. (“Svitzer”), a subsidiary of the global A.P. Moller-Maersk Group. Domiciled in Thailand, UWT operates a fleet of five (5) state of the art Marine Support Vessels (MSVs) and Utility Vessels supporting tanker lifting, static tow, drilling rig activities, anchor handling, SPM maintenance, floating hose maintenance, cargo transportation, stand-by, fire-fighting and oil spill response. The vessels are all chartered long term to oil companies in Thailand. The business has been operating since 1999 as a joint venture between Svitzer and the Unithai Group, MEO’s existing joint venture partner in Uniwise Offshore (“UWO”). MEO has agreed to purchase all of Svitzers shares in UWT for a consideration of US$18.9 million. This transaction is not expected to have a material impact on MEO’s financial results for Financial Year 2014.
Commenting on the acquisition, MEO Chief Executive Officer, Mr Diederik de Boer, said: “This acquisition is a natural extension of the position we have built up in Thailand in offshore vessel support services. We are very comfortable with our Joint Venture partners having worked with them for a number of years. The integration of UWO and UWT will be seamless given that the two businesses already share office space and resources. We look forward to developing this new venture and working with our customers in Thailand to continue to uncover new opportunities for growth through delivery of operational excellence.”
Miclyn Express Offshore (ASX:MIO) (“MEO” or the “Company”) is pleased to announce that its subsidiaries Express Offshore Solutions Pte Ltd (“EOS”) and Samson Express Offshore Pty Ltd (“Samson”) have been awarded a significant vessel contract by Mermaid Marine Australia Limited (“MMA”) to provide tug and barge support for the Subsea 7 Heavy Lift & Tie-in Scope on the Chevron-operated Gorgon Project.
MEO will provide a fleet of minimum two (2) Anchor Handling Tugs and nine (9) barges to support the subsea installation works. All vessels involved with the works will be delivering equipment to the Gorgon and Jansz-Io fields offshore Barrow Island.
The two (2) Anchor Handling Tugs, Magellan I and II, and three (3) Barges will come from MEO’s fleet. The remaining Barges will be sourced from subcontractors. The three (3) MEO Barges involved in the project include the two (2) newly constructed 400 foot Balastable Barges built in MEO’s Batam Shipyard as well as a 330 x 120 foot Barge that was recently purchased.
The Barge fleet will be provided by EOS, MEO’s 70% owned project transportation business. The Anchor Handling Tugs will be operated by Samson, MEO’s Australian subsidiary, meeting all the relevant Australian manning requirements. The project will also utilise the capacity of MEO’s Batam Shipyard, ensuring that all Barges working in the project meet stringent Australian quarantine and project requirements.
The total contract value is in excess of A$28 million. The contract will commence in Q4 2013 calendar year and is due to complete in the 2014 calendar year.
Commenting on the award, MEO Chief Executive Officer, Mr Diederik De Boer, said: “We are very pleased to be involved in this important Australian offshore construction project. This is the third large scale Australian transportation project MEO has been awarded following the recent completion of the DB Schenker project for the Gorgon filed, as well as the latest award from Heerema for the Ichthys project, which will follow almost immediately after the completion of the Subsea 7 project. We are able to leverage off our project execution expertise through EOS, our Australian operating capability through Samson and our Batam Shipyard facility capabilities and knowledge to provide solutions for clients looking to transport equipment and materials from South East Asia to Australia. We are committed to delivering on our work-scope in a safe manner as well as supporting numerous local opportunities.”
The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (47.3 percent), ExxonMobil (25 percent), Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).
Miclyn Express Offshore (ASX:MIO) (“MEO” or the “Company”) is pleased to announce that the MEO Rover, a 2,000 DWT Platform Supply Vessel (the “Vessel”) under construction in the Company’s Batam Shipyard, has been awarded a three (3) year charter with Seascape Surveys (“Seascape”), a business unit of Mermaid Maritime Public Company Limited, for the provision of ROV and full subsea support services. MEO was able to leverage off its in-house capabilities and Batam Shipyard to provide a vessel conversion solution that met the requirements of Seascape. The conversion process will include jumboisation of the vessel by six (6) meters, extension of the mezzanine deck and installation of a crane, two ROV generators, taut wire, a DP reference system, moon pool, air compressor and a-frame. The Company will recognise standby charter revenue during the conversion period, estimated to be 3.5 months beyond the vessels original scheduled delivery date being 15 August 2013. The Vessel will commence full operations with Seascape on or about the 1st of December 2013.
This is the second long-term charter between MEO and Seascape for an MEO subsea support vessel. Seascape is currently utilising the ‘Endeavour’ and has already exercised an extension under the charter party to continue utilising the ‘Endeavour’ through to March 2015 for its client base.
Mr. Peter Reichlmeier, Managing Director of the Seascape Group, added “we are pleased to charter a second vessel from MEO, as our company is expanding and our services growing due to our capabilities in IRM and subsea services. The confidence that our client base has in us in the form of new and exciting work opportunities, created the need to charter in a second ROV DP2 support vessel, and in turn, our confidence in MEO resulted in our signing with them for another three (3) year vessel charter.”
MEO’s Chief Executive Officer, Diederik de Boer said “we are delighted to expand our partnership with Seascape, a growing force in the region’s Subsea sector. We look forward to executing this project with them and continuing to service their needs going forward.”
The Company is also pleased to announce three long term Crew/Utility vessel contracts in Malaysia. Express 66 was awarded a 3.5 + 1 year contract, whilst MEO’s most recent deliveries, Express 75 and 76, have been awarded 1+1 year contracts.
The total aggregate value of the firm period of the MEO Rover contract and the three Crew/Utility Vessel contracts is approximately US$29 million.
MEO would also like to announce that it has exercised options held for the purchase of two (2) additional 90tn bollard pull AHTS. These vessels are the same design as the two vessels previously ordered by MEO’s Thailand joint venture, Uniwise Offshore. The vessels will be constructed over an 18 month period in Chinese shipyard Wuchang Shipbuilding Co. Ltd on attractive payment terms. The vessels are designed to support larger jack-up rigs and construction barges that are entering MEO’s core markets.
Miclyn Express Offshore (ASX:MIO) (“MEO” or “the Company”) is pleased to announce that it has entered into an agreement with Dredging International (Australia) Pty Ltd to supply an AHTS, MEO Sovereign 1, for the Chevron-operated Wheatstone Project in Western Australia. The contract will commence in May 2013 for 2 years firm.
MEO is also pleased to announce that it’s 70% owned business, Express Offshore Solutions (“EOS”), has secured a contract with Heerema Marine Contractors Nederland B.V. to provide Barges to transport project cargo from South East Asia to Australia for the Ichthys project. The project duration is approximately 1 year and will utilise 11 Barges including all of MEO’s 330 foot Barges as well as the pair of 400 foot Ballastable Barges currently under construction in MEO’s Batam Shipyard. The contract is anticipated to commence in the second quarter of calendar year 2014.
The total aggregate value of the firm period of the contracts disclosed above is approximately US$40 million.
Miclyn Express Offshore (ASX:MIO) (“MEO” or “the Company”) is pleased to announce that a key customer in Thailand has recently awarded the Company two long term Offshore Service Vessels (OSV’s) contracts. The Miclyn Constructor I and the MEO Sovereign II, both internally constructed OSV’s, have been awarded 2 year contracts commencing in February 2013 and March 2013 respectively.
MEO has also recently secured additional OSV contracts in South-East Asia and Middle East. The Miclyn Endurance was recently awarded a 1+1+1 year contract in Malaysia commencing in February 2013, the MEO Galaxy was awarded a 9 month + 3 x 1 month contract in Malaysia commencing in March 2013 and the Miclyn Power was awarded a 4.5 year contract in Qatar commencing in April 2013.
Including the Miclyn Victory and Miclyn Enterprise contracts announced on 18 January 2013, the Company has now signed seven new OSV contracts worth US$56 million since the start of the calendar year.
CEO Diederik de Boer said, “Whilst we have experienced some earnings softness in Financial Year 2013, largely due to a high level of re-contracting activity, asset redeployment and softer than anticipated market conditions, we have been able to leverage off our strong operating performance and customer relationships to secure a number of long term OSV contracts”.
In line with its fleet renewal strategy, MEO has also entered into agreements to sell two Crew/Utility Vessels for a modest disposal gain. The vessels are aged 23 years and 26 years and will exit the fleet in April 2013 as part of a renewal program that includes seven new Crew/Utility Vessel deliveries between January and June 2013.
MEO recently held a keel laying ceremony at their Batam based shipyard, PT Loh & Loh. The barge will be the first of a new series of 400ft heavy deck cargo barges with ballast system. It was designed by 38 Marine & Offshore Pte Ltd, with input from the in-house MEO Engineering Team. Expected delivery is mid 2013.
The 400ft barge is of steel all weld construction with a spoon head bow, flush deck and twin skegs. The main hull is divided by 7 transverse WT bulkheads and 3 longitudinal WT bulkheads into 31 compartments inclusive of a machinery/ballast control room. It has 2 x 280KW generators for electric power operation requirements and 2x 600M3/hr high capacity ballast pumps.
- Length overall: 122.00m (400ft)
- Beam moulded: 36.60m (120Ft)
- Depth moulded: 7.625m (25ft)
- Design draft: 5.80m (19ft)
- DWT about: 18,500 tons
- Design deck load: 25tons/m2