1. INTRODUCTION

The Board of Directors of Dayang Enterprise Holdings Bhd (“DEHB” or “the Company”) is pleased to announce that its wholly-owned subsidiary company, DESB Marine Services Sdn Bhd (“DESB Marine”), received Contract Extension from Sarawak Shell Berhad (“SSB”) for the Provision of One (1) Unit of Accommodation Work Boat – Dayang Opal for the Umbrella Contract for Offshore Support Vessel (OSV) Services for PETRONAS Petroleum Arrangement Contractors’ (PACs) Drilling and Project Activities.

2. VALUE AND DURATION OF THE CONTRACT

The value of the Contract is based on work orders issued by SSB throughout the extended contract duration effective from 20 March 2021 until 19 March 2022 under the same contract conditions.

3. RISK FACTORS

Risk factors affecting the Contract Extension include execution risks such as availability of skilled manpower and materials, changes in prices of materials, changes in political, economic and regulatory conditions. Throughout the years, DESB Marine has established its track record and expertise to undertake these projects. DESB Marine shall ensure strict compliance to the safety and operational procedures in the execution of contract requirements.

4. FINANCIAL EFFECTS

The Contract Extension will have no effect on the issued capital of the Company and is expected to contribute positively to the earnings of DEHB over the duration of the Contract.

5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

None of the directors and/or major shareholders and/or persons connected with the directors and/or major shareholders of the Company have any direct or indirect interest in the Contract.

6. DIRECTORS’ STATEMENT

The Board of Directors of the Company is of the opinion that the acceptance of the Contract Extension is in the best interest of the Company.

This announcement is dated 13 January 2021.