OTHERS MARINE & GENERAL BERHAD - AWARD OF CONTRACT FOR THE PROVISION OF ONE (1) UNIT OF STRAIGHT SUPPLY VESSEL (SSV)

MARINE & GENERAL BERHAD

Type Announcement
Subject OTHERS
Description
MARINE & GENERAL BERHAD
- AWARD OF CONTRACT FOR THE PROVISION OF ONE (1) UNIT OF STRAIGHT SUPPLY VESSEL (SSV)

INTRODUCTION

Marine & General Berhad (“M&G”) is pleased to announce that its subsidiary, Jasa Merin (Malaysia) Sdn Bhd (“JMM”), has been awarded one (1) contract by Hess Exploration and Production Malaysia B.V. (“Hess”), for the provision of one (1) Straight Supply Vessel (“SSV”) to support Hess' operations.

 

DURATION OF CONTRACT

The contract, expected to commence on 1 August 2018, is for a primary duration of three (3) years with two (2) options for Hess to extend for an additional (one) 1 year (i.e. 3 years primary + 1 year optional + 1 year optional).

 

RISK FACTORS

Risk factors affecting the contract are mainly operational risks such as accidents and unexpected breakdown of vessel. Notwithstanding this, JMM shall ensure strict compliance with the safety and operational procedures in the execution of contract requirements and has developed a programmed maintenance schedule which stringently adheres to the International Safety Management ("ISM") Standards in maintaining performance and seaworthiness of all its vessels.

 

FINANCIAL EFFECTS

The contract, estimated to have a value of approximately RM17 million for the primary term, is expected to contribute positively to the earnings of the Group for the financial period ending 31 December 2018. The contract is not expected to have any effect on the share capital and shareholding structure of M&G. There are no significant risks involved in JMM fulfilling its obligations under the contract.

 

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the contract awarded.

 

DIRECTORS’ STATEMENT

The Board of M&G is of the opinion the acceptance of the contract awarded to JMM is in the best interest of the Group.

 

This announcement is dated 25 July 2018.






Announcement Info

Company Name MARINE & GENERAL BERHAD
Stock Name M&G
Date Announced 25 Jul 2018
Category General Announcement for PLC
Reference Number GA1-25072018-00059