Swissco bags 2 deals worth up to US$119m

Singapore

MAINBOARD-listed Swissco Holdings has won two charter contracts worth up to about US$119 million.

In the first contract, a joint venture (JV) between Swissco and Union Offshore has bagged a charter contract worth up to US$115 million to support an Asia-Pacific-based oil company. The charter contract is for a period of up to seven years.

Union Offshore is a company incorporated in the Republic of the Marshall Islands.

In order to acquire an offshore service unit to fulfil the charter contract requirements, the JV has entered into a memorandum of agreement. Following its refurbishment and upgrading, the offshore service unit is expected to be deployed at first in the offshore oil and gas fields in Asia-Pacific around Q1 2015. Swissco said that the project will be funded through internal resources and bank borrowings.

The charter is expected to have a positive impact on the group's earnings per share or net tangible assets per share for FY2015, Swissco said.

Swissco has landed another 12-month charter contract worth up to US$3.87 million for a multi-purpose vessel in the Middle East.

Swissco's group chief investment officer Kelvin Tang said: "The acquisition by the group and the completion of this joint venture mark another key milestone in the history of Swissco. The award of the long-term charter contract is a testament of our successful strategy in acquiring cost-efficient rigs and operating in high-demand areas.

"With our experience in Latin America, we are confident that this partnership will further strengthen our expansion in the upstream of the exploration and production sector."

Swissco Holdings is a marine company providing rig and vessel chartering, shiprepair, maintenance and maritime services for the oil and gas, shipping and marine infrastructure industries.