OTHERS MARINE & GENERAL BERHAD - EXTENSION OF CONTRACT FOR THE PROVISION OF TWO (2) UNITS OF ANCHOR HANDLING TUG SUPPLY VESSELS (AHTSVs)

MARINE & GENERAL BERHAD

Type Announcement
Subject OTHERS
Description
MARINE & GENERAL BERHAD
- EXTENSION OF CONTRACT FOR THE PROVISION OF TWO (2) UNITS OF ANCHOR HANDLING TUG SUPPLY VESSELS (AHTSVs)

INTRODUCTION

The Board of Marine & General Berhad (“M&G” or “the Company”) is pleased to announce that Repsol Oil & Gas Malaysia Limited (“Repsol”) has granted a contract extension to M&G’s subsidiary, Jasa Merin (Malaysia) Sdn Bhd (“JMM”) to the contract originally announced by the Company on 4 October 2017.

 

DURATION OF CONTRACT EXTENSION

The contract to provide Repsol with two (2) Anchor Handling Tug Supply Vessels (“AHTSVs”) is being extended by Repsol for a further one (1) year period.

 

RISK FACTORS

Risk factors affecting the contract are mainly operational risks such as accidents and unexpected breakdown of vessel. Notwithstanding this, the Company 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 extension, estimated to have a value of approximately RM 25 Million, is expected to contribute positively to the earnings of the Group for the financial year ending 31 December 2018 and beyond. The contract is not expected to have any effect on the share capital and shareholding structure of M&G. There is 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 that the acceptance of the contract is in the best interest of the Group.

 

This announcement is dated 3 September 2018.






Announcement Info

Company Name MARINE & GENERAL BERHAD
Stock Name M&G
Date Announced 03 Sep 2018
Category General Announcement for PLC
Reference Number GA1-03092018-00024