TGoffs ... Jul11

Tanjung Offshore Bhd's outlook remains given the slow performance of its non-marine chartering division which has been a drag on rofitability.


Tanjung Offshore has been awarded long-term charter contracts from Petronas for three offshore service vessels (OSVs) collectively valued at RM50 million. The long-term contracts for the OSVs are for a period of between one and three years, effective June and July 2011, respectively, with options to extend for a period of between one and two years.

At this junction, market observers are not too optimistic about the company given its two consecutive quarterly net losses, even though the bulk of its OSVs are on long-term charter with Petronas and its production-sharing contracts contractors.

The immediate catalyst to Tanjung Offshore's share price recovery would be the listing of Bumi Armada, which is expected to boost the sentiment of all oil and gas vessel players in Malaysia.