INTRODUCTION
Further to the Company’s announcement on 28 March 2023, the Board of Directors of Perdana Petroleum Berhad (the “PPB” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Perdana Nautika Sdn Bhd (“PNSB”) has, on 4 November 2023 received a work order amendment and extension No. 1 from PETRONAS Carigali Sdn Bhd (“PCSB”) (the “Charterer”) for one (1) unit of Accommodation Work Barge (“AWB”) (“Contract Extension”).
DETAILS OF THE CONTRACT EXTENSION
The Contract Extension involves the amendment to the extension period from the original 229 days option to a period of up to 271 days, commencing from 4 November 2023. The Contract Extension is valued at approximately RM19.8 million.
PNSB shall provide 1-unit of AWB with crew and equipment to perform a continuous service as per the scope of works agreed to assist PCSB’s project activities.
FINANCIAL EFFECTS
The Contract Extension is expected to contribute positively to the earnings and net assets of PPB Group for the financial year ending 31 December 2024. The Contract Extension will not have effect on the share capital and shareholding structure of PPB.
RISK FACTORS
The risks associated with the Contract Extension are normal operational risks which can be mitigated through PPB Group's system of project management and internal business controls.
DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
None of the Directors and/or major shareholders or persons connected to them have any direct or indirect interest in the Contract Extension.
DIRECTORS' STATEMENT
The Board of Directors of PPB is of the opinion that the acceptance of the Contract Extension is in the best interest of PPB.
The Contract Extension announcement is not subject to the approval of the shareholders of the Company or any regulatory authorities. However, the approval of the Charterer to release this announcement is required and the Company has on 6 March 2024 obtained the Charterer’s approval to release the same.
This announcement is dated 6 March 2024.