Malaysia-based Silk Holdings, through its 70%-owned subsidiary Jasa Merin, has contracted Muhibbah Marine Engineering to build three anchor handling tug supply (AHTS) vessels worth MYR216.49m ($69.44m).
The contract includes the construction of two 62-metre AHTS vessels and one 70-metre AHTS vessels. The newbuildings are slated to be delivered in phases from the end of 2013 until early 2014.
“The agreement for the new vessels is in line with the group's ongoing fleet renewal and expansion initiative,” Silk Holdings said in a statement.
The vessel purchase consideration will be funded through a combination of internal funds and borrowings, the company added.
“The entering into the contracts will likely result in an increase in gearing for the financial year ending 31 July 2013 as part of the purchase consideration will be paid for by borrowings,” Silk Holdings said.
“It is anticipated that the vessels under the contracts will contribute positively to group's future earnings once deployed.”