INTRODUCTION

The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that KKB has received:

1) A Letter of Award from Petroleum Sarawak Berhad (“PETROS”) for the Price Agreement with a duration of three (3) years for Re-Conditioning (“RC”), Re-Qualification (“RQ”) and Re-Painting (“RP”) of LPG Cylinders (“PETROS Term Contract”).

2) KKB has also received a Letter of Award from Bina Puri Builder Sdn. Bhd. for the Proposed Serian Regional Water Supply Phase II (Stage 1) (“BP Sub-Contract”).

3) In addition, KKB has also received a Purchase Order from Greenchain Capital Sdn. Bhd. (“GCSB”) for the Supply of MSCL Pipes and Specials (“GCSB PO”).

The combined total contract sums for all the three (3) abovementioned PETROS Term Contract, BP Sub-Contract and GCSB PO is worth approximately RM93 million (Ringgit Malaysia Ninety Three Million Only).

DURATION OF CONTRACT

The PETROS Term Contract is valid until the third quarter of 2027.

The BP Sub-Contract is expected to complete within 24 months and the completion date for GCSB PO is scheduled to be delivered within 12 months.                                                   

FINANCIAL EFFECTS

The PETROS Term Contract, BP Sub-Contract and GCSB PO will have no effect on Share Capital of the Company and are expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of the Contracts/supply period.

RISK FACTORS

Risk factors affecting the PETROS Term Contract, BP Sub-Contract and GCSB PO 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 PETROS Term Contract, BP Sub-Contract and GCSB PO.

DIRECTORS’ STATEMENT

The Board is of the opinion that the abovementioned PETROS Term Contract, BP Sub-Contract and GCSB PO are in the best interest of KKB and its Group.

This announcement is dated 7 November 2024.