Singapore-listed shipbuilder ASL Marine Holdings Ltd informed that one of its wholly owned subsidiaries has reached an agreement with a customer on the cancellation of shipbuilding contracts for two offshore support vessels.

One of the vessels will be ready for operation by the end of the first quarter of 2015 and the other in the third quarter next year, ASL Marine said.

“The Board is confident that there is demand for these quality vessels as the company has already commenced discussions with potential buyers and/or charterers for the vessels,” the company added.

As explained, unless the vessels are sold, the revenues booked to date will have to be reversed.

“However and regardless of the outcome of the current negotiations, the impact of the rescission on the earnings per share of the Group for the financial year ending June 30, 2015 is unlikely to be significant,” APL went on to say.

The name of the client behind the order remained undisclosed.