KUALA LUMPUR (April 2): TAS Offshore Bhd has secured shipbuilding contracts worth RM15.3 million for two tugboats with an existing customer from Indonesia

In a bourse filing on Tuesday, TAS said the vessels are expected to be delivered in the third quarter of 2025.

“The revenue generated from the contract is expected to contribute positively to the earnings and net assets of TAS Group for the financial year ending May 31, 2026 (FY2026),” the grpup said.

In January, TAS had announced similar shipbuilding contracts worth a total of RM22.6 million for three tugboats, also secured from an existing customer from Indonesia and expected to be delivered in the same period.

Shares of TAS have been on a rally since the start of the year, gaining over 19 sen or 46.9% year-to-date. The counter further charted a new eight-year high of 68.5 sen on March 1.

TAS is principally involved in shipbuilding activities such as tugboat construction for the mineral ores industries, harbour tugs for port operations and landing crafts for transportation purposes.

According to its previous bourse filing, the group's order book stood at RM203 million at the end of finacial year ended May 31, 2023 (FY2023), which is expected to contribute positively to the group's financial position in FY2024 and FY2025.

Its major customers hail from Indonesia, with the Indonesian market accounting for 87.6% of its total revenue in FY2023.

For 2QFY2024, the company registered revenue of RM28.41 million, nearly three times the RM9.62 million reported a year earlier, due to more vessels being delivered.

Subsequently, it reported a turnaround with a net profit of RM4.52 million compared to a net loss of RM339,000 in the previous year’s corresponding quarter.

For the six-month period ended Nov 30, 2023, TAS reported a net profit of RM4.44 million against a net loss of RM1.09 million in the same period previously.

TAS shares closed up three sen or 5.31% at 59.5 sen, valuing the group at RM105.7 million. Some 1.77 million shares changed hands on Tuesday.