| Type | Announcement |
| Subject | OTHERS |
| Description |
LETTER OF AWARD |
INTRODUCTION
The Board of Directors (“the Board”) of KKB Engineering Berhad (“KKB”) is pleased to announce that KKB has received a Letter of Award from PETRONAS Dagangan Berhad (“PETRONAS”) for the Price Agreement For New And Refurbishment Of LPG Cylinders For Petronas Dagangan Berhad: Fabrication, Reconditioning Of LPG Cylinders And To Supply & Delivery Of LPG Compact Valves (“Contract”)
AND
That its associate company, Edisi Optima Sdn Bhd, has also received Letter of Award from PETRONAS Dagangan Berhad (“PETRONAS”) for the Price Agreement For Refurbishment Of LPG Cylinders For PETRONAS Dagangan Berhad: Requalification And Shot-Blast Repainting Of LPG Cylinder (“Contract”).
A formal agreement for the abovementioned Contracts shall be executed in due course.
Thirdly, KKB has also received a Purchase Order from Laras Jaya Engineering Sdn Bhd (“LJE”) for the Supply of Mild Steel Concrete Lined (“MSCL”) Pipes for Sarawak Water Supply Grid Programme – Stressed Areas.
The combined total contract sum for the abovementioned contracts/order is worth approximately RM30.8 million (Ringgit Malaysia Thirty Million Eight Hundred Thousand Only).
DURATION OF CONTRACT
Both PETRONAS Contracts are effective from 15 March 2019 and shall be valid for a period of three (3) years (“Contract Period”), unless terminated earlier with an option to extend the Contract Period for a further period up to two (2) year(s).
The completion date for LJE is scheduled within nine (9) months.
FINANCIAL EFFECTS
The Contracts/Purchase Order(s) will have no effect on Share Capital of the Company and is expected to contribute positively towards the earnings and net assets of the Company and Group for the duration of the supply period.
RISK FACTORS
Risk factors affecting the Contracts/order include execution risks such as availability of skilled manpower and materials, 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 Contracts/order.
DIRECTORS’ STATEMENT
The Board is of the opinion that the abovementioned Contracts/order is in the best interest of KKB and its Group.
This Announcement is dated 20 March 2019.
| Company Name | KKB ENGINEERING BERHAD |
| Stock Name | KKB |
| Date Announced | 20 Mar 2019 |
| Category | General Announcement for PLC |
| Reference Number | GA1-20032019-00086 |
