OTHERS E.A. TECHNIQUE (M) BERHAD (E.A. TECHNIQUE OR THE COMPANY) PROVISION OF LONG-TERM TIME CHARTER COASTAL VESSEL SERVICES FOR PETCO TRADING LABUAN COMPANY LIMITED (PTLCL)

E.A.TECHNIQUE (M) BERHAD

Type Announcement
Subject OTHERS
Description
E.A. TECHNIQUE (M) BERHAD (E.A. TECHNIQUE OR THE COMPANY)

PROVISION OF LONG-TERM TIME CHARTER COASTAL VESSEL SERVICES FOR PETCO TRADING LABUAN COMPANY LIMITED (PTLCL)



1. INTRODUCTION

 

The Board of Directors of E.A. Technique (M) Berhad (“EATECH” or “the Company”) is pleased to announce that the Company has recently been awarded a Contract by PETCO Trading Labuan Company Limited (“PTLCL”) vide Letter of Award dated 8 May 2019. The Contract is for the Provision of Long-term Time Charter Coastal Vessel Services of three (3) units of 9,000 DWT size vessel.

 

2. DURATION OF THE CONTRACT

 

The Contract duration will be for a primary period of five (5) years with five (5) extension options of one (1) year each upon expiry thereof at an agreed fixed schedule of rates and shall commence as follows :

 

  1. Vessel 1 : December 2020
  2. Vessel 2 : December 2020
  3. Vessel 3 : January 2021

 

The contract value is approximately RM 478.24 million, including the option period.

 

3. FINANCIAL EFFECTS

 

The Contract is expected to contribute positively to the earnings and net tangible assets of EA for the financial year ending 31 December 2021 and beyond. Notwithstanding this, the Contract is not expected to have any material effects on the issued and paid-up capital and shareholding structure of the Company.

 

4. RISKS ASSOCIATED WITH THE CONTRACT

 

Barring any unforeseen circumstances, there are no significant risk factors associated with the Contract save for operational and execution risks such as accidents, unexpected breakdown of vessels, weather conditions, as well as political, economic and regulatory conditions. In mitigating such risks, the Company carries out routine inspections and regular maintenance based on the Company’s comprehensive planned maintenance programme. Together with the Company’s strict health, safety, security and HSSE policy and procedures, it is of the view that the likelihood and impact of these risks is manageable within an acceptable level.

 

5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

 

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

 

6. DIRECTORS’ STATEMENT

 

The Board of Directors of the Company is of the opinion that the Contract is in the best interest of the Company.

 

7. APPROVAL FROM PETCO 

The Company obtained approval from PETCO with regards to the release of the announcement on even date.

 

The announcement is dated 16 May 2019.






Announcement Info

Company Name E.A.TECHNIQUE (M) BERHAD
Stock Name EATECH
Date Announced 16 May 2019
Category General Announcement for PLC
Reference Number GA1-13052019-00045