1. INTRODUCTION

The Board of Directors of WZ Satu wishes to announce that WZS Misi Setia Sdn. Bhd., a wholly-owned subsidiary of the Company and as the Consortium Leader together with the Consortium partner, UMD Energy Sdn. Bhd. (collectively to be referred to as “the Consortium”)  has on 1 July 2020 accepted a Letter of Award from PETRONAS Carigali Sdn. Bhd. (“PCSB”) for the Provision of Engineering, Procurement, Construction, Installation & Commissioning (“EPCIC”) of PM 309 Gas Ledang Redev Segment 2 (Ledang S2) Development Project (“the Contract”).

2. DURATION AND VALUE OF THE CONTRACT

1. The value of the Contract is approximately Ringgit Malaysia One Hundred and Twenty Million only (RM120,000,000).
2. The duration of the Contract is for 16 months and the Contract is targeted to be completed in October 2021.

3. RISK FACTORS

The Company does not foresee any exceptional risk factors other than the normal operational risks associated with the Contract and will take the necessary steps to mitigate these risks as and when it occurs.

4. FINANCIAL EFFECTS

The Contract is expected to contribute positively to the future earnings and net assets per share of the Company for the financial year ending 31 August 2021 to 31 August 2022.

5. DIRECTORS’ AND/OR MAJOR SHAREHOLDERS’ INTEREST

None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of the Company has any direct or indirect interest in the Contract.

6. DIRECTORS’ STATEMENT

The Board of Directors of the Company, having taken into consideration all aspects of the Contract, is of the opinion that the Contract is in the best interest of the Company.

This announcement is dated 1 July 2020.