Malaysia’s OSV builder TAS Offshore has received a notice of termination from QMS1 Offshore Services over the construction of two anchor handling tug oil recovery supply vessels.

Kuala Lumpur-listed TAS Offshore said it intends to proceed with legal proceedings from QMS1 Offshore Services’ purported termination of shipbuilding contracts.

The notice of termination was received by TA Ventures, wholly-owned by TAS Offshore.

“The purported termination of contracts is expected to have an impact on the company’s results for 2016 financial year. The extent of the impact cannot be ascertained at this point in time,” TAS Offshore stated.