Coastal Contracts Bhd could offer a special dividend if its joint venture (JV) in Mexico successfully refinances its loan and repays the group at least US$155mil in the next two weeks.
Oil and gas services outfit Coastal Contracts Bhd’s outlook is expected to improve with a pending contract extension of the company’s jack-up gas compression service unit (JUGCSU) as well as the planned expansion of the Papan gas processing plant in Mexico by Petróleos Mexicanos (Pemex).
Coastal Contracts Bhd is building a luxurious resort in Sabah and can expect profitability to improve once occupancy rate increases.
Coastal Contracts Bhd is still in negotiations with Mexico’s national oil company Petroleos Mexicanos (Pemex) on the Perdiz gas plant and jack-up gas compression service unit (JUGCSU) contract extension.
PETALING JAYA: TA Research has turned optimistic on the prospects of Coastal Contracts Bhd, underpinned by a number of positive developments surrounding the oil and gas services provider.
PETALING JAYA: Coastal Contracts Bhd is eyeing various gas projects for its Nuvoil joint venture (JV) in Mexico and its future prospects appear exciting.
KUALA LUMPUR: Coastal Contracts Bhd’s net profit for the third quarter ended March 31, 2023 (3Q FY2023) jumped to RM153.66 million compared to RM44.32 million in the same quarter last year due to higher profit contribution from its joint venture in Mexico.
PETALING JAYA: Coastal Contracts Bhd’s recurring income business model, following its pivot into gas processing and potential upsides from further project wins, are factors that will lift its earnings.By June 2023, there will be earnings growth on the completion and commissioning of the EMC Papan plant – an engineering, construction, operation and maintenance of a gas conditioning plant and its related infrastructure in the Ixachi field in Veracruz, Mexico.
COASTAL Contracts Bhd is taking a big bet on a project in Mexico. Will it pay off?