Kim Heng units clinch vessel contracts worth $50m

The contracts are to provide design, engineering and shipbuilding for new vessel builds. PHOTO: KIM HENG MARINE & OILFIELD

SINGAPORE - The Taiwan-based units of mainboard-listed offshore and marine engineering services provider Kim Heng have clinched multiple contracts totalling US$35 million (S$50 million).

The company announced that its wholly owned subsidiaries - Kim Heng Marine & Oilfield, Khan Hin Engineering and its 49 per cent owned subsidiary Bridgewater Marine (Taiwan) - have been awarded approximately US$17.3 million, US$14.6 million and US$3.1 million worth of contracts respectively.

The contracts to provide design, engineering and shipbuilding for new vessel builds are expected to be completed by the fourth quarter of 2023.

Contributions to the company's bottom line are expected to begin later this year and continue into financial year 2023.

"The group remains well positioned and equipped with land-based marine assets and offshore vessels that enable us to leverage our knowledge in the offshore renewable industry throughout Asia and the United States to support the global energy transition towards a sustainable future," said Mr Thomas Tan, Kim Heng's executive chairman and chief executive.

Headquartered in Singapore and with more than 50 years of experience, the company offers a comprehensive range of products and services that caters to different stages of marine infrastructure projects and offshore oil and gas projects, from oil exploration to field development and oil production.

It has two shipyards at 9 Pandan Crescent and 48 Penjuru Road with a combined waterfront of 205m, enabling it to carry out a multitude of services, including offshore rig repair, maintenance and refurbishment, fabrication, vessel building and afloat repairs, as well as supporting new businesses in the renewable and marine construction markets.

In recent years, the group has ventured into the clean energy segment, especially in the offshore wind renewable market and particularly in North-east Asia.

Mr Tan said his company will continue to broaden its service offerings in clean energy and marine construction as part of its diversification from traditional oil and gas markets.

Shares of Kim Heng rose 0.4 cent or 4.7 per cent to nine cents as at midday on Friday.

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