Kim Heng bags 1-year charter for 2 vessels

KIM Heng Offshore & Marine (O&M) Holdings said after Wednesday's trading close that it has secured a one-year charter commencing this month for two anchor handling tug supply (AHTS) vessels.

The contract for the two vessels, Bridgewater 131 and Bridgewater 132 involves support for offshore drilling activities in Malaysia. The vessels will service project or projects operated by an independent oil company and a national oil company-linked entity.

The Business Times understands that with this new contract, the fleet utilisation for Kim Heng's fleet of AHTS vessels now ranges about 70 per cent through to the first quarter of 2019.

Kim Heng has acquired these two vessels from an auction held for assets of Swiber Holdings after the latter entered into judicial management.

Kim Heng has indicated plans that it is on a look-out for more distressed asset opportunities as it aims to expand to a 15-strong AHTS fleet.

Executive chairman and CEO Thomas Tan added in the Wednesday's regulatory announcement that the goal is to "establish a strong position in the oil and gas sector" by seizing "new market opportunities for better growth prospects".

By doing so, Kim Heng would be "well-positioned" to ride "the eventual upturn... to secure more contracts in the region".

Kim Heng expects the one-year contract announced on Wednesday to contribute to its financial results for the year ending Dec 31, 2018.