Alam Maritim Resources Bhd announced that its wholly-owned subsidiary, Alam Maritim (M) Sdn Bhd, has received a letter of award from Repsol Oil & Gas Malaysia Ltd for the provision of subsea inspection, maintenance and repair services for PM3-CAA.
In a filing to Bursa Malaysia today, Alam Maritim said the contract value is as per the work order request by Repsol Oil & Gas Malaysia for a duration of five years.
The contract has been effective since June 30, 2020 with its first vessel mobilisation for this year targeted for the middle of August.
Alam Maritim said the risk factors associated with the contract include execution and operational risks contributed by human or technical inefficiency, equipment and materials in compliance with the terms of the contract.
Unexpected mechanical breakdowns, uncertainties in the supply and price of materials, economic, regulatory and political conditions are additional risk factors, it added.
“Through the years, Alam Maritim has established its track record and expertise to undertake this contract.
“In mitigating the risks, Alam Maritim will closely monitor all planned activities as per the project schedule,” it said.
The company said it will adhere to the Quality, Health, Safety, Security and Environment – Integrated Management System to continually deliver reasonable quality services.
Alam Maritim said the contract is expected to contribute positively to its earnings and net tangible assets and its group of companies for the financial year ending Dec 31, 2020 and thereafter within the duration of the contract.
It noted none of the directors or major shareholders has any direct or indirect interest in the contract.
Alam Maritim also said its board of directors believes the acceptance of the contract is in the best interest of the company.
Two weeks ago, Alam Maritim also won a RM9.93 million work order for underwater services from IPC Malaysia BV.
Alam Maritim shares closed with a half sen or 6.25% gain to 8.5 sen, with a market capitalisation of RM105.82 million. The stock saw some 27.36 million shares traded.