Alam Maritim shareholders back US$19.8 million vessel purchase
The company estimates that owning the vessel rather than chartering it could save about RM9.4 million a year.
Shareholders of Alam Maritim Resources Bhd have backed a proposed cash acquisition worth US$19.8 million (RM80.8 million) for an offshore support vessel from Singapore-based POET Shipbuilding & Engineering Pte Ltd.
The proposed acquisition involves a 65-metre vessel, which is expected to be completed by October 2028. It would be the group’s first subsea vessel and, according to the company, provide more capacity to deliver projects and bid for further work.
Alam Maritim estimates annual charter-cost savings of about RM9.4 million from owning the vessel. Chief financial officer Eric Yap Yuen Yee told The Edge that ownership would allow the group to keep the profit margin otherwise paid to an external vessel owner.
Yap said this would also give Alam Maritim more room to lower its bids for clients and develop longer-term relationships. The company currently operates four vessels under charter arrangements.
The proposed financing comprises RM44.66 million in bank borrowings and RM44.66 million from internally generated funds. Yap said talks with several local banks were under way, with some foreign banks also having engaged with the group.
Alam Maritim is rebuilding its business pipeline after exiting Practice Note 17 (PN17) status on June 8. Its subsea order book was RM1.44 billion as of Aug 31, while end-June cash and short-term deposits amounted to RM99.16 million and borrowings were RM3.31 million.
