Malaysian offshore service provider Icon Offshore has secured a two-year contract extension from Zell Transportation (ZT) for the charter of its maintenance and support vessel Icon Kayra.
Icon Offshore said in a press release that Zell Transportation had extended the contract for the vessel on May 10, but the shipowner only got permission to disclose the deal yesterday.
Icon Offshore signed the original charter contract with Zell Transportation in 2014 for a period of five years.
"The variation to the contract is valued at approximately RM36 million and is expected to contribute positively to the earnings, order book and net assets of Icon for the financial year ending 31st December 2019 and beyond. Notwithstanding this, the contract is not expected to have any material effect on the share capital and shareholding structure of Icon," the statement said.
The risks associated with the contract are mainly operational risks such as accidents and unexpected breakdown of vessels.
In mitigating such risks, Icon carries out routine dry docking inspections, afloat repairs and regular maintenance based on the Company’s comprehensive planned maintenance program.