Coastal’s 2QFY09 results were above expectations, mainly due to the higher number of offshore support vessels (OSV) delivered in the current quarter. Its strong orderbook of RM1.55bn has kept the company busy although its orderbook replenishment stood at only RM17m in 1H09. Furthermore, we believe the recent RM70m contract award by a customer to build 2 offshore support vessels and 1 tugboat is a signal of jobs starting to flow into the shipbuilding O&G segment. Maintain Buy.
Coastal Contract Smooth Sailing
Coastal’s 2QFY09 results were above expectations, mainly due to the higher number of offshore support vessels (OSV) delivered in the current quarter. Its strong orderbook of RM1.55bn has kept the company busy although its orderbook replenishment stood at only RM17m in 1H09. Furthermore, we believe the recent RM70m contract award by a customer to build 2 offshore support vessels and 1 tugboat is a signal of jobs starting to flow into the shipbuilding O&G segment. Maintain Buy.