Malaysia’s Icon Offshore has sealed a deal worth around MYR51m ($12.1m) to provide one deepwater PSV for Kebabangan Petroleum Operating Company (KPOC).

The contract has started on 12 November and will go on for two years with an extension option of one additional year.

Kuala Lumpur-listed Icon Offshore said the long term contract is expected to contribute positively to its earnings for the financial year ending 31 December 2015 and beyond.

The company also announced a fall in earnings for the third quarter ended 30 September 2015, with net profit taking a 70.8% year-on-year plunge to MYR18.95m.

The third quarter revenue also fell by 13.4% year-on-year to MYR69.06m primarily due to lower vessel utilisation, as well as continuous lower activities in the oil and gas industry.

“The upstream E&P activities in Malaysia are expected to continue to underpin the demand for OSV. The market condition for OSV remains highly challenging which has largely impacted the OSV operators including the company,” Icon Offshore said.

“Whilst the industry outlook is expected to remain soft, certain portion of the group’s orderbook are long term (more than one year) in nature, and the group remains focused to ensure its utilisation rate is maximised through competitive tendering for domestic and regional contracts,” the company said.

It added that it remains cautious on the results for the financial year ending 31 December 2015.