ICON OFFSHORE TO SELL RIG FOR RM381.7 MLN

KUALA LUMPUR, Aug 30 (Bernama) -- Icon Offshore Bhd’s wholly-owned subsidiary, Icon Caren (L) Inc, has entered into a sale and purchase agreement with ADES Arabia Holding for the proposed disposal of its Perisai Pacific 101 rig for US$85.0 million (RM381.7 million).

In a statement today, the offshore support vessel provider and offshore drilling rig contractor said the proposed disposal is conditional upon the approval of Icon’s shareholders at an extraordinary general meeting in due course.

Subject to all approvals being obtained, the proposed disposal is expected to be completed in the fourth quarter of 2022.

Icon, via its wholly-owned unit Icon Fleet Sdn Bhd, purchased the rig and rig-related assets from Perisai Petroleum Teknologi Bhd for US$42.54 million (RM177 million) in October 2020.

Icon managing director Datuk Seri Hadian Hashim said the acquisition of the rig has provided the company with the opportunity to pivot into the offshore drilling business at a highly favourable price and operate as a stand-alone model.

“The business provided an additional source of income as part of the company’s long-term business growth initiatives, which were to enhance and broaden its offerings of products and services to better serve its clients and to transform into an integrated service provider,” he said.

Hadian added that the increase in oil prices driven by multiple global events has impacted the upstream favourably.

He explained that the robust activities in the upstream sectors have driven the demand for upstream services which have resulted in the increase in charter rates and asset prices since 2001. 

“Whilst this development will continue to have a positive impact on the overall financial performance of Icon, the initial strategy to scale up its presence in the drilling segment through further asset ownership is increasingly challenging to execute as asset prices have increased significantly,” Hadian said.

He said the proposed disposal presents an opportunity for Icon to monetise its investment in the rig at a significant profit of RM185.5 million, providing Icon with the financial strength to diversify into other business areas such as venturing into the new energy space and service segment through strategic merger and acquisitions.  

-- BERNAMA