THHE Fabricators Sdn. Bhd. (TFSB), a subsidiary of TH Heavy Engineering Berhad (THHE), has received a Letter of Award from Lundin Malaysia B.V. (Lundin) dated 4 November 2013 for the fabrication of Wellhead Platform (WHP) in relation to the PM307 Bertam Field Development Project.
Under the Contract, the Company is to undertake the Fabrication of Wellhead Platform (WHP) for the Bertam Field Development Project located at Block PM307, approximately 175 kilometers off the east coast of Peninsular Malaysia. It is a one-off contract and the scheduled completion date for the contract shall be approximately 12 months.
The Contract is expected to contribute positively to the earnings and net assets per share of THHE for the financial year ending 31 December 2013 and 2014 respectively.
Risk factors affecting the Contract include but are not limited to execution risks such as availability of skilled manpower and materials, changes in prices of materials, and changes in political, economic and regulatory conditions. The Company has over more than a decade established its track records and expertise to undertake such projects. Therefore, the Board and management believe that the Company is able to mitigate the abovementioned risk factors.
THHE, November 14, 2013