Published June 8, 2009

Scomi Marine to dispose of some ageing vessels

	Email this article
	Print article
	Feedback

(KUALA LUMPUR) Scomi Marine Bhd plans to sell some of its ageing vessels to strengthen its cash flow, according to president Mukhnizam Mahmud.

'Most of them will be offshore support services vessels because of the age and also because the demand of customers has changed,' he said at the company's annual general meeting here last Friday.

Scomi Marine currently has a fleet of 138 vessels, of which 37 are offshore support services vessels, and the company may consider selling its 20-year-old vessels if good offers are received, Mr Mukhnizam said.

On the number of vessels Scomi planned to sell, he said: 'In terms of number, we are opportunistic. If there are offers, we will sell them.' With a cash flow of RM150 million (S$62.6 million) currently, the company is now in a good position to expand its fleet, Mr Mukhnizam said.

'We had made a decision not to go for fleet expansion last year due to the oil price hike and the prices of vessels were also very high,' he said. 'But now because of the consolidation that we took in 2008, we are in a better position to invest in new fleet expansion.'

With demand for offshore services support remaining resilient, this was an opportunity for the company to expand its fleet as the prices of vessels had dropped, Mr Mukhnizam said.

'We will be looking seriously to add to our fleet in the next 2-3 years,' he said, adding that the company would take delivery of an accommodation barge this week.

Scomi Marine is also scheduled to take delivery of two anchor-handling tug and supply vessels by year-end and early next year, Mr Mukhnizam said. -- Bernama