INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that its subsidiary, OceanMight Sdn Bhd has received a Letter of Award with Limited Notice to Proceed (“LNTP”) from Sarawak Shell Berhad (“SSB”) for Provision of Engineering, Procurement and Construction (EPC) of Standard Wellhead Platforms for MLNG FaS (F27, F22 and Selasih) Gas Field Development (“Contract”).

A formal agreement for the said Contract will be executed in due course.

AND

That its subsidiary company, KKB Industries (Sabah) Sdn Bhd, has also received a Purchase Order from Seri Ghanimi Contractor Sdn Bhd (“SGC”) for the Supply of Mild Steel Concrete Lined (“MSCL”) Pipes.

The estimated combined total contract sum for the abovementioned Contract/Order is worth approximately RM351.7 million (Ringgit Malaysia Three Hundred Fifty-One Million Seven Hundred Thousand Only).

DURATION OF CONTRACT

The SSB Contract is effective from December 2022 until completion of work whereas the completion date for SGC is scheduled to be nine (9) months.

FINANCIAL EFFECTS

The Contract/Order will have no effect on Share Capital of the Company and Group and is expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of the Contract/Order.

RISK FACTORS

Risk factors affecting the Contract/Order include execution risks such as availability of skilled manpower and materials, forex and changes in pricing, weather conditions and/or political, economic and regulatory conditions.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders and/or person connected with them has any interest, direct or indirect in the abovementioned Contract/Order.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned Contract/Order is in the best interest of KKB and its Group.

This Announcement is dated 11 January 2023.