Type | Announcement | Subject | OTHERS | Description | PERDANA PETROLEUM BERHAD ("PPB" OR THE "COMPANY")WORKS ORDER AWARD FOR THE PROVISION OF ONE (1) UNIT ACCOMMODATION WORK BARGE TO RELATED PARTY, DESB MARINE SERIVCES SDN BHD |
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The Board of Directors of PPB wishes to announce that the wholly-owned subsidiary of the Company, Perdana Nautika Sdn Bhd (“PNSB”) has on 20 May 2025 accepted the work order award from DESB Marice Services Sdn Bhd (“DESBMS”), a wholly-owned subsidiary of Dayang Enterprise Holdings Bhd (“Dayang”) which is a major shareholder of PPB, for one (1) unit of Accommodation Work Barge (“AWB”) (“Vessel Charter”).
DETAILS OF THE VESSEL CHARTER EXTENSION
The Vessel Charter is expected to commence on 16 June 2025 (“Commencement Date”). The duration of the contract is for a firm period of 130 days from the Commencement Date, with an extension option up to 60 days. The total estimated contract value (without the extension period) is approximately RM11.6 million.
PNSB shall provide the AWB with crews and equipment to perform 24-hour services for assisting and/or servicing drilling rigs, offshore installation, derrick barges, towing and anchor jobs.
DETAILS OF THE RECURRENT RELATED PARTY TRANSACTION
The Vessel Charter is recurrent related party transactions which the Company has obtained a mandate from the Company’s shareholders at its Annual General Meeting held on 21 May 2025 for the amount of RM140.0 million.
The principal activities of the PPB Group are the provision of marine support services for the oil and gas industry and the chartering of offshore support vessels (“OSV”). As Dayang is a major shareholder of the Company, the Vessel Charter is deemed a recurrent related party transaction (“RRPT”).
The above RRPT will be carried out on arm’s length basis and on normal commercial terms which are not more favourable to the related party.
RATIONALE
The PPB Group’s OSV operations complement those of Dayang and its group of companies (“Dayang Group”), whose principal activities is the provision of offshore topside maintenance services, minor fabrication works and offshore hook-up and commissioning services. The Vessel Charter is part of the strategic alliance between Dayang Group and PPB Group where the utilisation of its vessel can be maximised and qualified to bid for more offshore maintenance works.
EFFECTS OF THE RRPT
The effects of the RRPT are as set out below: -
(a) Share Capital and Substantial Shareholdings
The RRPT will not have any effect on the issued and paid-up share capital of PPB or the shareholdings of PPB’s substantial shareholders as it does not involve any issue of shares of the Company.
(b) Earnings, Net Assets and Gearing
The RRPT is not expected to have any material effect on the net assets of PPB Group for the financial year ending 31 December 2025, but is anticipated to contribute positively to the future earnings of PPB Group. There will also not be any material effect on the gearing of the PPB Group.
CONDITIONS OF THE RRPT
The Vessel Charter is recurrent transactions with Dayang Group which the Company has obtained a mandate of RM120.0 million from the Company’s shareholders at its Annual General Meeting held on 21 May 2025. The value transacted since then (including the above-mentioned Vessel Charter) to the date of this announcement is RM13.9 million.
RISK FACTORS
The risks associated with the Vessel Charter are normal operational risks, which can be mitigated through PPB Group’s system of project management and internal business controls.
DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST
The Interested Directors of the Company, namely En Alias bin Mat Lazin an being officer of Dayang and Mr Chin Chee Kong being a Director of NAIM Holdings Berhad (“NAIM”), a person connected to Dayang, are interested in the Vessel Charter.
Dayang, NAIM, Datuk Ling Suk Kiong, Y.M. Tengku Dato’ Yusof bin Tengku Ahmad Shahruddin, Joe Ling Siew Loung @ Lin Shou Long, Datuk Hasmi bin Hasnan and Datuk Amar Abdul Hamed bin Haji Sepawi are the major shareholders of PPB (“Interested Major Shareholders”) and are interested in the Vessel Charter.
The Interested Directors, have abstained and will continue to abstain from Board deliberations and voting on the relevant resolution pertaining to the Vessel Charter at the Board Meeting.
STATEMENT BY THE BOARD OF DIRECTORS
Save for the Interested Directors, the other members of the Board are of the opinion that the Vessel Charter is in the best interest of the PPB Group.
The approval of DESBMS to release this announcement is required and the Company has on 30 July 2025 obtained the approval to release.
This announcement is dated 31 July 2025.
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