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, Dayang Enterprise Sdn Bhd (“DESB”), received Contract Extension from Sarawak Shell Berhad (“SSB”) and Sabah Shell Petroleum Company Limited (“SSPC”) for the Provision of Topside Major Maintenance Services for SSB and SSPC.

2. VALUE AND DURATION OF THE CONTRACT

The value of the Contract is based on work orders issued by SSB and SSPC throughout the extended contract duration and shall include any or all other work and services which is generally related to the scope of works in this contract as per Contract Schedule of Price.

The duration of the Contract is extended until 15th June 2021.

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 has established its track record and expertise to undertake these projects. Notwithstanding this, DESB 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 23 December 2020.