Sealink secures long-term vessels charter worth up to RM63 mil

KUALA LUMPUR (Oct 26): Sealink International Bhd has secured long-term charters for four offshore support vessels from oil majors for up to two years worth up to RM63 million and the sale of three vessels overseas for RM7 million.

It said the sale of the vessels is part of Sealink’s strategy to continually modernise and upgrade its fleet of vessels.

“Sealink constantly sells older vessels and replaces them with newer vessels, in line with the changing requirements of the oil and gas industry,” it said in a filing with Bursa Malaysia on Wednesday (Oct 26).

It said the net proceeds after deducting the estimated expenses and other ancillary expenses relating to the abovementioned contracts would be used for working capital purposes.

“At the same time, the sale of older vessels will result in future savings in terms of laid-up costs, dry-docking and reactivation expenses.

“Savings would then be utilised for better resources reallocation,” it said.

Meanwhile, it said the contract is expected to contribute positively to the earnings and cash flow of the company for the financial year ending Dec 31, 2022.

However, it said there would not be any material effects on its net assets per share, gearing and earnings per share.