Offshore staff

SINGAPORE -- Labroy Shipbuilding and Engineering Pte. Ltd. has secured contracts for the construction of two 72.5-m, 150-tonnes bollard pull anchor handling tug supply (AHTS) vessels. The units are scheduled for delivery in 2009.

The new shipbuilding contracts have raised the company's order book to $1.2 billion, says director Tan Boy Tee, Labroy chairman and managing.

"These new contracts provide Labroy with good earnings visibility until 2009," Tan says, pointing out that Labroy has been receiving a string of orders for AHTS vessels.

Tan projects a strong outlook for the building of new offshore AHTS vessels globally. "Similar to oil rigs, the majority of the global offshore AHTS fleet was built during the last offshore cycle in the 1970s. Currently, more than 70% of the fleet is more than 20 years of age and this aging fleet is due for replacement," he says.

"There is a strong direct link between the growth of AHTS vessels and that of offshore rig platforms. Thus, the current boom in rig building bodes well for the prospects of AHTS vessels. The replacement program of AHTS vessels is expected to intensify in the coming years, and shipbuilders with expertise in building AHTS vessels such as Labroy are well poised to ride on the expected increase in demand for such vessels," Tan says.

12/14/2006