KUALA LUMPUR (Aug 16): Dayang Enterprise Holdings Bhd has secured a contract from Sarawak Shell Bhd/Sabah Shell Petroleum Co Ltd (SSB/SSPC) for the provision of one unit landing craft tank (LCT) known as Dayang Cempaka.
Dayang Enterprise said that its wholly owned subsidiary DESB Marine Services Sdn Bhd has been awarded the contract, value of which is based on work orders issued by SSB/SSPC approximately within 548 days from Sept 26, with a six-month extension option.
In a Bursa filing on Tuesday (Aug 16), it said the value would include any or all other work and services generally related to the scope of works in this contract at a fixed schedule of rates.
Dayang Enterprise said risk factors include execution risks such as availability of skilled manpower and materials; changes in prices of materials; and changes in political, economic, and regulatory conditions. But it said that DESB Marine has an established track record and expertise to undertake these projects and that it would ensure strict compliance with the safety and operational procedures in the execution of contract requirements.
The group also said that the acceptance of the contract is expected to contribute positively to the earnings of Dayang Enterprise over the contract duration.
On Tuesday, Dayang Enterprise's share price closed unchanged at 97.5 sen, valuing the group at RM1.12 billion.
Source: The Edge Market
