Avangaad locks in RM66.8m in port services portfolio with Northport
KUALA LUMPUR: Avangaad Bhd, a Bursa Malaysia main market-listed marine transportation and offshore storage specialist, and Libra Perfex Precision Sdn Bhd secured a new contract from Northport (Malaysia) Bhd for RM66.8 million.
Extending beyond its stable tenure-based portfolio, Avangaad is actively advancing growth avenues in the non-oil and gas (O&G) segments.
These pivotal new contracts validate Avangaad's continued success in strengthening its port and tugboat operations portfolio.
Further, Avangaad continues to build on its strong business momentum with Northport, a long-standing client since 2013.
Avangaad's three existing 40-tonne Z-Peller harbour tugboats have been awarded a further two-year service extension, totalling an estimated RM18.9 million, reflecting Northport's continued confidence in Avangaad's operational and proven track record in port support services.
In addition to the contract extensions, Avangaad has secured a new 5-year contract valued at RM47.9 million to provide daily charter services for 3 units of 50-ton Bollard Pull Z-Peller harbour tugboats, following its successful tender bid for the tugboat services.
The contract includes an optional 5-year extension, potentially securing up to a decade of recurring revenue and showcasing Avangaad's long-term earnings visibility and order book strength.
These awarded contracts mark Northport's continued trust in Avangaad for the 12th consecutive year.
As a long-standing strategic partner to one of Malaysia's leading ports, Avangaad has consistently demonstrated its operational excellence and reliability in managing and operating critical marine assets for Northport.
Avangaad executive director Datuk Wira Mubarak Hussain Akhtar Husin said these contract awards are a clear and robust endorsement of Avangaad's proven capability in delivering consistently high standards of service and reliability in marine operations.
'While we continue to maintain a presence in offshore storage, the newly secured contracts emphasise our expansion into non-O&G sectors.
'More importantly, they reiterate our potential to penetrate broader market segments and grow our base of recurring income.
'Our position continues to be validated as Malaysia's only maritime player offering four integrated lines of maritime services. As a diversified solutions provider, we are committed to serving our clients, whom we view as long-term partners, as we scale new heights.
'Capitalising on enhanced governance across Avangaad Group, we remain committed to deepening our sustainability focus. Our proven service offerings underpin a well-diversified portfolio, positioning us to capitalise on future growth opportunities across both the oil and gas (O&G) and non-O&G sectors,' he said in a statement.
Under these comprehensive contracts, Avangaad will provide fully manned tugboats with experienced, licensed Malaysian crews, a hallmark of its commitment to local talent development and operational safety.
The scope encompasses essential daily charter services, rigorous vessel maintenance, advanced firefighting capabilities, and guaranteed round-the-clock operational availability, all of which are crucial for the efficient and safe conduct of port operations in Northport, Port Klang.
These new and extended contracts come on the heels of Avangaad's successful upliftment from PN17 status, showcasing the company's sustained turnaround and strong market confidence.
Avangaad remains focused on maintaining high vessel utilisation rates, generating robust cash flow, and implementing ongoing operational improvements, particularly within its expanding tugboat operations.
The successful award of new long-term contracts reaffirms Avangaad's proven capabilities and growth potential in the Malaysian maritime sector.
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