The Board of Directors of Sealink International Berhad (“SEALINK” or “the Company”) is pleased to announce that SEALINK Group has secured long term charters for four (4) offshore support vessels from oil majors and sale of three (3) vessels overseas (“Contracts”).

The long-term charters are for a firm period of up to two (2) years, with extension and they are expected to contribute positively to the earnings and net tangible assets of the Company for the financial year ending 31 December 2022 and beyond. The proceeds for the long-term charters are potentially up to approximately RM63 million.

The abovementioned sale of vessels with average age of 17 years, amounting to approximately RM7 million are taking into consideration of the cost of dry docking and reactivation for all the three (3) vessels. The net book value and loss on disposal are approximately RM8.3 million and RM1.3 million respectively as at 30 September 2022.

MODE OF PAYMENT

SEALINK Group had received the full payment for the sale of the abovementioned vessels on 26 October 2022.

BASIS OF ARRIVING AT THE SALE CONSIDERATIONS

The prices were arrived at on a “willing buyer willing seller” basis.

LIABILITIES TO BE ASSUMED

There are no liabilities, including contingent liabilities, in relation to the sale of offshore support vessels which will remain with SEALINK Group.

UTILISATION OF PROCEEDS

The net proceeds after deducting the estimated expenses and other ancillary expenses relating to the abovementioned Contracts will be used for working capital purposes.

RATIONALE AND BENEFITS FOR THE SALE OF VESSELS

It is part of SEALINK Group’s strategy to continually modernise and upgrade SEALINK Group’s fleet of vessels. SEALINK Group constantly sells older vessels and replaces them with newer vessels in line with the changing requirements of the oil and gas industry.

At the same time, the sale of older vessels will result in future savings in terms of laid-up costs, dry-docking and reactivation expenses. Savings would then be utilised for better resources reallocation.

PERCENTAGE RATIO APPLICABLE

The highest percentage ratio applicable for the sale of vessels pursuant to Paragraph 10.02(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad was 18.6%.  

FINANCIAL EFFECT

The abovementioned Contracts are expected to contribute positively to the earnings and cash flow of SEALINK Group for the financial year ending 31 December 2022. Notwithstanding this, there will not be any material effects on the Group’s net assets per share, gearing and earnings per share.

The sale of vessels will not have any effect on the issued share capital and substantial shareholders’ shareholdings as they do not involve the issuance of new shares in the Company.

APPROVALS REQUIRED

The abovementioned Contracts are not subject to the approval of the shareholders of the Company or any relevant regulatory authorities.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the abovementioned Contracts.

DIRECTORS’ STATEMENT

The Board of Directors of SEALINK, having considered all factors is of the opinion that the sale of the vessels is in the best interest of the Company.

DOCUMENTS AVAILABLE FOR INSPECTION

The Memorandum of Agreements for the abovementioned sale of vessels are available for inspection at the office of Sealink International Berhad at Lot 1035, Block 4, MCLD, Piasau Industrial Area, 98000 Miri, Sarawak for a period of three (3) months from the date of this announcement during normal office hours from Monday to Friday (except on public holidays).

This announcement is dated 26 October 2022.

ABOUT THE COMPANY

SEALINK Group is an Integrated Service Provider which builds, sells, owns and operates a diverse fleet of offshore marine support vessels, serving mainly the global offshore oil and gas exploration and production industry. Being one of the main operators of offshore marine support vessels in Malaysia for the oil and gas industry, we are now strengthening our position to be the major provider for offshore marine support vessels for other niche areas in the industry.

We have a diversified fleet of offshore marine support vessels predominantly focused on and used in the offshore oil & gas industry and able to cater to a wide base of reputable clients in the various segments of the industry.

Presently, SEALINK owns two shipyards located in Miri, Sarawak.