The Board of Directors of Alam Maritim Resources Berhad announces that its wholly-owned subsidiary, Alam Maritim (M) Sdn Bhd, has recently been awarded a contract for the provision of one straight supply vessel for an established oil and gas company.
The value of the Contract is approximately RM 37.9 million (USD 12 Mln). The Contract is for a firm period of three years with an extension option for another one year.
The risks associated with the Contract are mainly operational risks such as accidents and unexpected breakdown of vessels. In mitigating such risks, the Company has developed a programmed maintenance schedule which stringently adheres to the International Safety Management (ISM) Standards in maintaining performance and seaworthiness of all vessels.
The Contract is expected to contribute positively to the earnings and net assets of AMRB for the financial year ending 31 December 2013 up to 2017. Notwithstanding this, the Contract is not expected to have any material effects on the share capital and shareholding structure of the Company.
October 29, 2013