KUALA LUMPUR (Nov 7): Icon Offshore Bhd said it has secured a contract to supply a 60-tonne anchor handling tug supply vessel, which will be used for SEA Hibiscus Sdn Bhd’s drilling campaign.

The group said its wholly owned unit Icon Offshore Group Sdn Bhd received the letter of award from SEA Hibiscus on Oct 18 to perform its 2023/2024 drilling campaign. The provision of service commenced on Oct 24.

Icon said the value of the contract is based on the schedule of rates issued by SEA Hibiscus throughout the contract duration, which is 450 days from the commencement date with a 30-day extension option.

“Risks for the provision of service include typical risks associated with the provision of anchor handling tug vessel services for drilling and project activities which are in the normal course of Icon’s business. Such risks will be adequately addressed and mitigated through Icon’s existing standard operating procedures and processes developed over these years,” said the group in a filing with Bursa Malaysia on Tuesday.

Icon said the contract is expected to contribute positively to its earnings, order book and net assets for the financial year ending Dec 31, 2023 (FY2023) and FY2024.

As of June 30, Icon’s order book stood at RM505.4 million for the offshore support vessel segment, with long-term contracts making up 96% of the total.

Icon's share price closed down half a sen or 4.17% at 11.5 sen on Tuesday, giving the group a market capitalisation of RM311.25 million. Year-to-date, the counter has risen over 27%