Kuala Lumpur: Bursa Malaysia’s main market-listed maritime operating service and solution provider Avangad Bhad has completed the sale of its floating storage and offloading (FSO) vessel for US $ 10.5 million (about RM44.5 million), which gives immediate benefits of RM29.4 million.
This division defends RM44.5 million in cash income, which will be re-formulated in high-upper, long-lasting property with a long-term development strategy of Avagad. This step provides more financial flexibility to maintain a balanced fleet and strengthen the ability of the group to extend the service offerings in both oil and gas (O&G) and non-O & G markets.
Executive Director Datuk Veera Mubarak Hussain Akhtar Husin described the transaction as a step to “create alternatives” for the group.
“We are mashing this property at the right time to ensure that Avangad remains tight and well capital. In the asset strategy, success is linked to align the capacity with a term.
Datuk Veera Mubarak said that income acts as a natural hedge, which increases the flexibility of the group for changes in the group’s cyclic market, while it brings it into a position to catch opportunities that improve the visibility of earning.
He said, “The capital was unlocked, which strengthened our agility and decisive, a clear course was established to redefine integrated maritime solutions in the region.”
The next capital is currently subject to reviews. The benefit from this sale underlines the stable operating cash flow of Avangad and its readiness is to carry forward the extended charter contract opportunities.
