KUALA LUMPUR (Nov 11): Coastal Contracts Bhd (KL:COASTAL) and its client have mutually terminated its liftboat charter contract worth RM12.8 million as the vessel failed to meet technical requirements during a pre-deployment inspection.
The termination agreement was signed on Nov 10 after the company and the unnamed charterer agreed not to proceed with the contract, according to the oil and gas services provider's filing with Bursa Malaysia on Tuesday.
"The charter will not proceed as the liftboat was not able to meet certain technical requirements during the on-hire inspection. To fulfil these requirements, additional work is required, and the liftboat will not be ready in time for the intended charter period," the group said.
The contract was scheduled to run for 120 days, including optional extensions, and was expected to contribute positively to Coastal’s earnings and net assets for the financial years ending Dec 31, 2025, and Dec 31, 2026.
Coastal Contacts announced the charter contract win earlier in October, and following the expiry of an earlier liftboat contract on Sept 19, 2025, after the former charterer opted not to exercise a one-year extension option.
Coastal Contracts’ shares finished unchanged at RM1.18 on Tuesday, valuing the group at RM659.36 million. The stock has fallen over 22% year to date.