Malaysian shipbuilder TAS Offshore has lost a contract for the construction of two offshore vessels.
According to the company’s statement, the contract was for two anchor handling tug oil recovery supply vessels.
In a filing on Bursa Malaysia on Friday, Tas Offshore said its subsidiary TA Ventures had received the notice of termination from QMS1 Offshore Services Limited.
Tas Offshore said that its position is that the “is that the purported Notice of Termination is not valid and the company intends to proceed with legal proceedings.”
The shipbuilder expects the termination to have an impact on its financial results in 2016, but said it is not yet possible to estimate the extent of the impact.