Malaysian marine services provider Avangaad has finalised the sale of an unnamed floating storage and offloading (FSO) vessel for a total cash consideration of MYR44.5 million ($10.5 million). The company stated the divestment delivers an immediate gain of MYR29.4 million and unlocks significant cash flow for new investments.
The proceeds from the sale will be strategically redeployed into what the company describes as higher-yielding and longer-tenured assets, in line with its long-term strategy.
The company adds the transaction is expected to strengthen the group’s financial capacity to maintain a balanced fleet and expand its service offerings across both the oil and gas and non-oil and gas markets, while also providing additional financial flexibility.
Datuk Wira Mubarak Hussain Akhtar Husin, Executive Director of Avangaad, stated that the transaction is about, “creating optionality by monetising the asset at the right time to ensure the company stays agile and well-capitalised.” He explained that the proceeds would serve as a natural hedge, strengthening the group’s ability to navigate cyclical market changes and pursue opportunities that could enhance earnings visibility. This positions the company to preserve its balanced mix between the oil and gas and marine logistics sectors, he added.