OTHERS HANDAL RESOURCES BERHAD - AWARD OF CONTRACT

HANDAL RESOURCES BERHAD

Type Announcement
Subject OTHERS
Description
HANDAL RESOURCES BERHAD 
- AWARD OF CONTRACT

1. INTRODUCTION

 

Handal Resources Berhad (“Handal” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Handal Offshore Services Sdn Bhd (“HOSSB”), has been awarded a contract for the Provision of Offshore Crane Maintenance and Repair Services (“Contract”) from Repsol Oil & Gas Malaysia Limited (“Repsol”). 

 

2. DETAILS ON THE CONTRACT

 

The Contract entails the provision of maintenance and repair services and provision of manpower services for 19 cranes located offshore Peninsular Malaysia. 

 

The duration of the Contract is for a period of three (3) years, commencing from 10 April 2019, with an extension option of one (1) year.

 

The Contract does not have a specified value as it is on a “call-out” basis whereby the work orders will be awarded at the discretion of Repsol based on its activity schedule and maintenance and repair schedule throughout the duration of the Contract.

 

3. FINANCIAL EFFECTS

 

The Contract will not have any effect on the share capital and shareholding structure of the Company. 

 

The Contract is not expected to have any material effect on the net assets of Handal and its subsidiaries (“Group”) for the financial period ending (“FPE”) 30 June 2019. The Contract is expected to contribute positively to the earnings of the Group for the FPE 30 June 2019 and subsequently until the expiry of the Contract.

 

4. RISKS IN RELATION TO THE CONTRACT

 

The Group foresees, amongst others, the risk factors affecting the Contract includes delays in issuing of work orders by Repsol. The execution of services under the Contract depends on work orders to be issued by Repsol from time to time. Hence, any delay in issuing work orders will lead to delay in the recognition of revenue from the Contract.

 

5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

 

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of Handal has any direct or indirect interest in the Contract.

 

6. STATEMENT BY DIRECTORS

 

The Board of Directors of the Company is of the opinion that the Contract is in the ordinary course of business and is in best interest of the Company.

 

This announcement is dated 9 May 2019.






Announcement Info

Company Name HANDAL RESOURCES BERHAD
Stock Name HANDAL
Date Announced 09 May 2019
Category General Announcement for PLC
Reference Number GA1-09052019-00033