Alam Maritim Resources Berhad announced that its wholly owned subsidiary, Alam Maritim (M) Sdn Bhd, has recently accepted the award from a local oil and gas company for the provision of one unit workboat.
The Contract is for a primary period of one year with an extension option exercisable by the Client for another one year. The Contract is for a value of up to RM69.22 million (if the Client engages the workboat for the full duration, inclusive of the optional period).
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 programme maintenance schedule which stringently adheres to the International Safety Management (ISM) Standards in maintaining performance and seaworthiness of all its vessels.
The Contract is expected to positively contribute to the earnings and net assets of AMRB for the financial year ending 31 December 2012 and beyond. Notwithstanding this, the Contract is not expected to have any effect on the issued and paid-up share capital and shareholding structure of the Company.
None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in either of the above mentioned Contract.
The Board of AMRB is of the opinion that the acceptance of the Contract is in the best interests of the Company.
Alam Maritim Resources Bhd, October 12, 2012