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BackOct 21, 2011
Date Announced
:
21/10/2011



Type
:
Announcement
Subject
:
OTHERS

Description
:
NOTICE OF CONTRACT EXTENSION FROM MURPHY SABAH OIL CO. LTD AND MURPHY SARAWAK OIL CO. LTD ("MURPHY") FOR THE PROVISION OF TOPSIDE MAJOR MAINTENANCE SERVICES (TMM) FOR MURPHY PRODUCTION OPERATIONS

Announcement Details/Table Section :

INFORMATION

Dayang Enterprise Holdings Bhd ("DEHB" or "The Company") is pleased to announce that Dayang Enterprise Sdn Bhd ("DESB"), a wholly-owned subsidiary of DEHB, had, on 18 October 2011, received a Notice of Contract Extension from Murphy for the Provision of Topside Major Maintenance Services (TMM) for Murphy Production Operations.

The Contract Extension shall be effective from 19 November 2011 until 18 November 2012.

DESB estimates the total value of the Contract Extension to range approximately RM50 million to RM100 million over the duration of the Contract. However, the Contract is a "call-up contract" made up of work orders, which will be awarded at the discretion of Murphy during the duration of the Contract and the values of the work orders are based on the Contract Schedule of Rates.

EFFECTS OF THE CONTRACT EXTENSION

The effects of the Contract Extension on DEHB Group are set out as below :-

(a) Share Capital and Substantial Shareholdings

The Contract Extension does not have any effect on the issued and paid-up share capital of DEHB or the shareholdings of DEHB's substantial shareholders.

(b) Earnings, Net Assets and Gearing

The Contract Extension is expected to contribute positively to the earnings and net assets of DEHB Group for the financial year ending 31 December 2011 and the subsequent financial periods within the duration of the Contract Extension.

The Contract Extension is not expected to have any material effect on the gearing of DEHB Group for the duration of the Contract as funding for the Contract is expected to be internally generated.

RISK IN RELATION TO THE CONTRACT EXTENSION

The risks in relation to the Contract Extension are the normal operational business and financial risks encountered by DEHB Group. DEHB Group has considered the contractual performance and financial risks and after due analysis, DEHB Group is of the view that the likelihood and impact of these risks are considered manageable and within acceptable level.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTEREST

None of the directors, major shareholders of DEHB or its subsidiaries and/or persons connected with them has any interest, direct or indirect in the Contract.

This announcement is dated 21 October 2011.