Kuala lumpur: Avangaad Bhd has signed a memorandum of agreement to sell its floating storage and offloading (FSO) vessel, FOIS Nautica Tembikai, to MTC Energy Sdn Bhd for US$10.5 million (RM44.5 million).

According to BERNAMA News Agency, the divestment unlocks RM44.5 million in immediate cash flow for Avangaad, with plans to strategically redeploy the proceeds into higher-yielding and longer-tenured assets. This move aligns with the company’s long-term strategy and provides additional headroom for financial flexibility.

Avangaad stated that the transaction is anticipated to enhance the group’s financial capacity, enabling it to maintain a broad and balanced fleet while expanding service offerings across both oil and gas (O and G) and non-O and G markets. The company is considering its next capital deployment, with the current gain affirming its stable operational cash flow and providing strategic capacity to pursue expanded charter contract opportunities.

The company added that barring any unforeseen circumstances, and subject to all necessary approvals, the proposed sale of the vessel is expected to be finalized by the fourth quarter of 2025.