SILK Holdings Bhd (“SILK”) announces that its subsidiary, Jasa Merin (Malaysia) Sdn Bhd (“JMSB”), has been awarded contracts by ExxonMobil Exploration and Production Malaysia Inc. for the provision of two Anchor Handling Tug Supply Vessels.
Both the contracts are expected to commence in mid July 2012 for a primary term of eighteen (18) months, each with an option exercisable by the Charterer for extension of the same for a further period of twelve (12) months.
The contracts which taken together are valued at approximately RM35.0 Million for their primary term, are expected to contribute positively to SILK Group earnings and assets for the financial year ending 31 July 2012 and 2013. The contracts are not expected to have any effect on the share capital and shareholding structure of SILK. There are no significant risks involved in JMSB fulfilling the obligations under the contracts.
The Board of SILK is of the opinion the acceptance of the contracts are in the best interests of SILK Group.
Press Release, July 18, 2012