KUALA LUMPUR (March 27): Oil and gas services firm Keyfield International Bhd (KL:KEYFIELD) is disposing of an 11-year-old four-point mooring accommodation workboat (AWB) for US$12.5 million (RM55.4 million) to Saraf Corp India Pte Ltd (SCIPL).

In a bourse filing on Thursday, Keyfield said its wholly owned subsidiary, Keyfield Offshore Sdn Bhd, has entered into a memorandum of agreement with SCIPL for the proposed disposal.

SCIPL is a Mumbai-based integrated services company specialising in catering, housekeeping, logistics, and protective coatings.

The AWB, dubbed Keyfield Lestari, was purchased by the group in 2023 for an initial investment of RM31.3 million and currently carries a net book value of RM28 million.

Keyfield expects to record a RM28 million gain from the disposal, with proceeds allocated for working capital and fleet expansion, targeting higher-specification vessels to improve tendering capabilities and weather resilience, with full utilisation by the financial year ending Dec 31, 2026 (FY2026).

Barring any unforeseen circumstances, the disposal is expected to be completed in the second quarter of 2025, Keyfield noted.

“The disposal is intended to unlock Lestari’s value,” said Keyfield group CEO and executive director Datuk Darren Kee Chit Huei.

“It is part of our fleet renewal and enhancement strategy, as Lestari has relatively lower specifications compared to our other AWBs.”

Kee added that the disposal aligns with the group’s long-term sustainability agenda to renew its fleet with higher-capability vessels that can be deployed to a wider range of customers.

Shares in Keyfield rose two sen or 0.9%, to RM2.19 at market close on Thursday, giving it a market capitalisation of RM1.76 billion.