Reference is made to the Uzma Berhad’s (“Uzma” or “the Company”) announcement made on 3 July 2023 pertaining to the MOU made between Uzma Engineering Sdn. Bhd. (“UESB”) and Malaysia Marine and Heavy Engineering Sdn. Bhd. (“MMHE”).
1. Introduction
The Board of Directors of Uzma is pleased to announce that UESB, a wholly owned subsidiary of the Company, had on 14 August 2024 entered into a Sub-Contract Agreement (“the Contract”) for the provision of Refurbishment, Life Extension and Conversion of a Mobile Offshore Drilling Unit ("MODU"), into a Mobile Water Injection Facility ("WIF") with MMHE.
(UESB and MMHE, shall collectively be referred to as the “Parties” and individually referred to as “Party”).
The consent from MMHE for Uzma to release the information on the Contract to Bursa Malaysia Securities Berhad was obtained on 1 October 2024.
2. Information on MMHE
MMHE is a company incorporated in Malaysia and having its registered office at Level 31, Menara Dayabumi, Jalan Sultan Hishamuddin, 50050 Kuala Lumpur, Malaysia. MMHE is a wholly-owned subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad and is principally engaged in providing energy and marine solutions for a wide range of offshore and onshore facilities and vessels. MMHE’s specialisation lies in energy offshore construction, including deepwater facilities, marine repair, conversion services, and marine refurbishment, with a niche focus on Liquefied Natural Gas (LNG) carriers.
3. Salient Terms of the Contract
The salient terms of the Contract are as follows: -
(a) MMHE shall perform the work including all deliverables, fabrication, design, engineering and services required for the repair and conversion of the MODU and all related services (“Work”);
(b) Contract Value is approximately Ringgit Malaysia Forty-Three Million Only (RM43,000,000.00);
(c) The Work shall be completed following the schedule that has been agreed between the Parties and upon the issuance of the Statement of Completion by MMHE which will then be followed by a Completion Certificate by UESB; and
(d) The completion of the Work is expected within the first quarter of 2025.
3. Risk Factors
The Company does not foresee any exceptional risk other than the normal operational risks associated with the Contract. The Company will take the necessary steps to mitigate the risks as and when it occurs.
4. Financial Effects
The Contract is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and shareholding structure of the Company for the financial year ending 30 June 2025.
5. Directors’ and Major Shareholders’ Interests
None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of Uzma has any direct or indirect interest in the Contract.
6. Directors’ Statement
The Board of Directors of the Company, after considering all the relevant factors, is of the opinion that the entering of the Contract is in the best interest of the Company.
This announcement is dated 1 October 2024.