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Atlantic Navigation bags US$236m vessel charters

MIDDLE East-focused marine logistics services provider Atlantic Navigation Holdings (Singapore) has won long-term charters totalling US$236 million for 10 offshore supply vessels.

The charters are for five maintenance/work/utility vessels and five anchor-handling tug, supply and safety standby vessels. Seven of these vessels will be newbuilds.

The 10 vessels will go on a firm five-year charter with a two-year extension option to support a Middle Eastern national oil company's operations in the Arabian Gulf.

The charters will commence progressively, with three vessels to be handed to the national oil company starting from May 2016 and the remaining seven newbuilds to be deployed in 2017.

The charters secured are expected to contribute positively to the net tangible asset and earnings per share of Atlantic Navigation for the financial year ending Dec 31, 2016.

Atlantic Navigation slipped into the red on a net loss of US$1.06 million for Q1 FY2016 as revenue plunged 49.4 per cent to US$6.95 million. The marine logistics provider posted a net profit of US$4.39 million for Q1 FY2015.