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EMS Group clinches LOI worth US$570m

The newly-enlarged EMS Group - a result of the merger of Singapore-listed EMS Energy and Koastal Group - has signed a binding letter of intention (LOI) with an Asia-based shipyard worth US$570 million.

The LOI is for the supply, testing and commissioning of up to six sets of major equipment package (MEP) for rigs, said the firm in an announcement.

The group expects to enter into formal contracts with the buyer by end 2015. The first set of MEP - each set costs US$95 million - is expected to be delivered by end June 2017.

The company said the contract is expected to have a significant positive impact on the group's financial performance for the financial years 2016 to 2019.

Trading in the shares of EMS Energy were halted pending the announcement and will resume on Friday. The counter was last traded at 2.2 Singapore cents.