Kreuz Holdings picking up steam

Positive outlook for 2013 will be backed by US$205m orderbook.

According to OCBC Investment Research, Kreuz Holdings believes that the subsea sector will continue its growth trend as subsea technology becomes an economically viable solution for increasingly remote or ultra-deepwater fields. 

OCBC adds, backed by an order-book of US$205m and with a stronger set of operating assets, Kreuz is primed for future growth. 

Here's more:

The group disclosed that it has entered into a shipbuilding agreement with a Chinese shipbuilder for a multipurpose subsea dive support and construction vessel for about US$113.7m.

The new vessel will help broaden and strengthen Kreuz’s range of subsea capabilities and enable it to work on subsea contracts of higher value. Construction for the new vessel should take around 30 months and will be funded by a mixture of debt (65%) and internally generated capital (35%).

Loan interest is expected to be around 3.2% (or about US$2.4m) per year.