'Busy year' for Coastal with new contracts (BT)

MALAYSIAN shipbuilder Coastal Contracts Bhd is expected to be busy for at least the next 12 months after its three units collectively secured new contracts worth RM268 million yesterday, said OSK Research.

Coastal announced that its units had collectively secured contracts for the sale of seven offshore support vessels, three tug boats and two oil barges.

Including the new contracts, Coastal Group now has about RM760 million worth of vessel sales orders awaiting delivery, to customers up to 2012.

"With this contract on board, we believe that Coastal’s orderbook should keep it busy for at least the next 12 months," said OSK Research in its research note today.

Coastal has been surviving on its existing orderbook for the past two years, during which, it had secured minimal new contracts.

Meanwhile, OSK Research is maintaining its "buy" call on Coastal with an unchanged target price of RM4.41, based on the existing price earnings ratio of 8 times 2011 earnings. - BERNAMA