Hoe Leong Corp's associate leases out oil tankers for $58 million

Hoe Leong Corp's associate company, Semua International and its subsidiaries - a Malaysian oil tanker and transport logistic company - has been awarded two contracts from a large oil major worth up to about RM150 million (S$58 million).

The charter contracts are for three years for two of Semua's oil tankers.

There is an option to extend the lease for another two years based on mutually agreed terms between Semua and the charterer.

The vessels were leased on Aug 1.

The contracts are not expected to have a material impact on the profitability, earnings per share or net asset value per share of the company in the current financial year.