Venture into the dredging industry accelerates Group towards target of 20% profitability from non-O&G activities
KUALA LUMPUR, 27 AUGUST 2026 – Keyfield International Berhad (“Keyfield” or
“the Group”) announced the acquisition of Inai Kenanga (“Inai Kenanga” or
the “Dredger”), a mega trailing suction hopper dredger (“TSHD”), for a cash
consideration of USD24.7 million, equivalent to approximately RM99.7 million. Inai
Kenanga was acquired from Inai Rimba Sdn. Bhd. (Receivers and Managers
Appointed), whom Malayan Banking Berhad had appointed as receivers and managers
in March 2024.
Completed in 2016, Inai Kenanga was at the time the largest
dredger in Asia and the third-largest in the world. Built at a reported cost of
RM1.2 billion and with a hopper capacity of 32,205m³, it is designed for
large-scale dredging, land reclamation, marine engineering, major
infrastructure and coastal development projects. Under its previous ownership,
Inai Kenanga was deployed for various dredging works in Malaysia, including
during the tenure of a 15-year concession to undertake dredging and reclamation
works at federal ports. The estimated fair market value of the Dredger, as
assessed by an independent market valuer, is USD63.7 million while the estimated
cost of constructing a similarly-specified dredger is upwards of USD150.0
million.
Along with the acquisition,
Keyfield also announced the signing of a Shareholders’ Agreement with Star
Naval 1 Pte Ltd (“SNPL”), a company co-owned by Starhigh Asia Pacific Pte Ltd
(“Starhigh”) and Naval Elite Limited. The Shareholder’s Agreement lays the
groundwork for the special purpose vehicle (“SPV”), which will eventually be 60:40
owned between Keyfield and SNPL. The SPV shall own and operate Inai Kenanga,
allowing Keyfield and Starhigh to leverage their combined strengths to
successfully secure and execute dredging projects in the future. Keyfield
will fund USD23.8 million for Inai Kenanga’s purchase, with SNPL funding USD0.9
million plus Inai Kenanga’s estimated reactivation cost of USD15.0 million.
Starhigh, founded in 2006,
is a Singapore-based regional player in the dredging and sand supply industry, with
projects across Singapore, Cambodia and Peninsular Malaysia, while also
actively exploring expansion opportunities in East Malaysia, Vietnam and Taiwan.
Notable projects include extension of Singapore’s Jurong Island, as well as the
development and maintenance of the navigation channel at Tok Bali Supply Base
in Kelantan.
Dato’ Darren Kee Chit Huei, Group CEO and Executive
Director, Keyfield Group, said:
“We are thrilled to announce the addition of our largest
vessel to our fleet with the acquisition of Inai Kenanga, one of the region’s
largest trailing suction hopper dredgers.
This acquisition marks our foray into the dredging industry
and accelerates our expansion beyond the oil-and-gas sector. It is our second
acquisition of a non-O&G vessel, following last year’s acquisition of
Keyfield Blessing, our cable-laying barge that is currently on-hire in the
Middle East.
Notably, our acquisition of Inai Kenanga marks the
continuation of our strategy of acquiring assets below market value, positioning
ourselves to ride future growth opportunities. Our entry into the offshore
support vessel (“OSV”) chartering industry in 2016 enabled us to assemble a
young OSV fleet with top-of-the-range specifications at reasonable capital
outlays. Today, we see parallels of this strategy and the acquisition of Inai
Kenanga. With the former owner of Inai Kenanga having entered receivership, we
were presented with a unique opportunity to acquire this asset at below market
value. Leveraging the strength of our balance sheet, this acquisition will be
funded through our internal cash — hence not requiring any borrowings.
Following the reactivation of Inai Kenanga, which is
expected to be completed in 2027, we, together with Starhigh, intend to participate
in dredging projects in Southeast Asia, particularly Malaysia and Singapore.
Starhigh brings relevant industry network and expertise that complements our
marine asset ownership and operational capabilities.
Dredging and related marine works are increasingly
important in strengthening coastal resilience and supporting the development of
marine infrastructure. Activities such as beach nourishment, land reclamation,
and the deepening and maintenance of waterways and channels facilitate the
construction and expansion of ports and coastal developments, while also
enhancing coastal protection and improving water flow and drainage during
periods of flooding and storm surges.
Against this backdrop, demand for dredging and sand supply services
is expected to grow, with projects such as Singapore’s Tuas Mega Port representing
only the tip of the iceberg in terms of the region’s broader demand.
Furthermore, the Transport Ministry’s intent to develop new policies to
encourage the growth of Malaysia’s dredging and reclamation industry is
expected to unlock opportunities for the Group.
Ultimately, our venture into the dredging industry will
accelerate our evolution from a pure-play O&G OSV provider into a
multi-spectrum marine solutions provider, providing additional income source,
apart from OSV chartering and cable-laying chartering.
In the long term, we aim to increase the contribution of
non-oil and gas activities to up to 20% of the Group’s total profitability. We
are also continuing our geographical diversification strategy, through the
securing of projects in the Middle East and Thailand and potentially other
countries in the region.”
This press release has also been published on VRITIMES
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