KUALA LUMPUR (Nov 13): Alam Maritim Resources Bhd (KL:ALAM) has teamed up with a Singapore-based firm to pursue offshore transportation and installation projects in Southeast Asia and the Indian subcontinent.

The group's subsidiary, Subsea Worldwide Solutions Sdn Bhd (SWS), will hold a 70% stake in the joint venture, while Singapore-based Trident Oceanus Pte Ltd will own the remaining 30%, said Alam Maritim in a Bursa Malaysia filing on Friday.

The offshore services provider said the venture will have an initial paid-up capital of RM10,000, with SWS subscribing RM7,000 and Trident RM3,000, subject to confirmation in the final incorporation and subscription documents.
 
SWS is 50%-owned by Alam Maritim’s indirect wholly owned subsidiary, Alam Hidro (M) Sdn Bhd. Its services include subsea inspection, repair and maintenance, remotely operated vehicle operations, offshore construction and engineering support.

Trident, incorporated in January this year, specialises in offshore engineering and project management for the oil and gas and offshore renewable energy sectors. It is wholly owned by Singaporean Vikneswaran Balakrishnan, who is also its sole director.

Alam Maritim said the venture would combine Subsea Worldwide Solutions’ subsea services capabilities with Trident’s technical and engineering expertise to pursue and execute regional projects. The filing did not identify any secured contracts or disclose an order book for the venture.

Subsea Worldwide Solutions will nominate two of the venture’s three directors, including the chairman, while Trident will nominate one. However, key decisions — including material acquisitions or disposals, certain financing arrangements and changes to the business plan — will require both parties’ written approval.

Profits and losses will be allocated in proportion to their respective stakes, unless otherwise agreed. The allocation of losses will not automatically oblige either shareholder to provide additional capital, loans or guarantees.

Alam Maritim said the venture is not expected to materially affect earnings, net assets or gearing for the financial year ending June 30, 2027, but is expected to contribute positively to future earnings. Shareholder approval is not required.

Alam Maritim shares closed half a sen or 2.22% lower at 22 sen on Friday, valuing the group at RM98.03 million. The stock has fallen 26% year to date.