Jasa Merin Wins AHTS Provision Contract from Sarawak Shell

SILK Holdings Bhd (“SILK”) announcde that its subsidiary, Jasa Merin (Malaysia) Sdn Bhd (“JMSB”), has been awarded a contract by Sarawak Shell Berhad (“Sarawak Shell”), for the provision of one (1) unit of Anchor Handling Tug Supply Vessel (“AHTSV”).

The contract is expected to commence from 18 August 2013 for a primary term of three (3) years and may be extended for a further one (1) year period at the discretion of Sarawak Shell.

Risk factors affecting the contract are mainly operational risks such as accidents and unexpected breakdown of vessels. Notwithstanding this, the Company shall always ensure strict compliance to the safety and operational procedures in the execution of contract requirements and has developed a programmed maintenance schedule which stringently adheres to the International Safety Management (ISM) Standards in maintaining performance and seaworthiness of all vessels.

The contract, valued at approximately RM82 Million for the primary term, is expected to contribute positively to the earnings and assets of the Group for the financial year ending 31 July 2014 and beyond. The contract is not expected to have any effect on the share capital and shareholding structure of SILK. There are no significant risks involved in JMSB fulfilling the obligations under the contract.

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SILK, August 19, 2013