INTRODUCTION
The Board of Directors of Alam Maritim Resources Berhad ("ALAM” or "the Company") wishes to announce that its wholly-owned subsidiary, Alam Maritim (M) Sdn Bhd, has recently entered into a Subcontract Form of Agreement (Subcontract No. 4120000022) (“Subcontract”) with Petronas Floating LNG 1 (L) Ltd (“PFLL”), a wholly-owned subsidiary of Petroliam Nasional Berhad.
DETAILS OF THE SUBCONTRACT
Alam Maritim (M) Sdn Bhd has been awarded by PFLL a Subcontract works for the engineering, procurement, installation and related activities for the floating liquefied natural gas (FLNG) Offshore Works – Mooring System Installation (Package No. 1) for the award value of RM49.0 million.
The duration for Subcontract works is from 20 May 2015 until 15 September 2015.
FINANCIAL EFFECTS
The Contract is expected to contribute positively to the earnings and net tangible assets of ALAM for the financial year ending 31 December 2015 and beyond. Notwithstanding this, the Contract is not expected to have any material effects on the share capital and shareholding structure of ALAM.
RISKS ASSOCIATED WITH THE CONTRACT
The risks associated with the contracts are mainly operational risks such as accidents and unexpected breakdown of vessels and delays due to human, mechanical and logistic factors as well as weather condition. In mitigating such risks, the Company will closely monitor all planned activities as per the project schedule and ALAM adheres to the Quality, Health, Safety and Environment - Integrated Management System in ensuring to continually deliver reasonable quality services. Further, ALAM has developed a programmed maintenance schedule which stringently adheres to the International Safety Management (ISM) Standards in maintaining performance and seaworthiness of all vessels in ALAM fleet.
DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the abovementioned Contract.
DIRECTORS' STATEMENT
The Board of Directors of ALAM is of the opinion that the acceptance of the abovementioned Contract is in the best interest of the Company.
The announcement is dated 11 June 2015.
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