Reference is made to the announcement dated 13 August 2025. Unless otherwise stated, defined terms used in this announcement shall have the same meanings as defined in the announcement dated 13 August 2025.

The Board of Directors of Avangaad wishes to furnish additional information on the announcement made on 13 August 2025 in respect of the Proposed Sale of Vessel as follows:-

i. The equivalent exchange rate was USD1.00=RM4.2335 based on Bank Negara Malaysia’s USD/MYR exchange rate as at 5:00 p.m. on 11 August 2025.

ii. The valuation range of USD10.5 million to USD11.0 million was indicative for negotiation purposes. The final sale consideration of USD10.5 million was determined after intensive negotiations, taking into account prevailing market conditions, the availability of comparable vessels for sale, and the current physical condition of the vessel.

iii. The Market Approach, Cost Approach and Income Approach are the potential standard appraisal methods in developing an opinion of Fair Market Value of the vessel. Each approach is described below:-

• Market Approach / Sale Comparison Approach

The Sales Comparison Approach analyse recent sales of similar properties, with the assumption that an informed purchaser would not pay more than the cost of acquiring a comparable asset. While recent transactions ranged from USD9.3 million to USD14.5 million, current market conditions make it challenging to achieve such prices on a willing-buyer, willing-seller basis. Notably, the higher-priced transactions relate to newer vessels built in 2000 and 2002.

• Cost Approach

The Cost Approach considers the current replacement cost new of the subject property being appraised and then deducts for the loss in value caused by all forms of depreciation including physical deterioration, functional obsolescence, and economic obsolescence. The fair market value of the FSO was estimated based on last valuation conducted and adjusted for the remaining period asset life taking into account the current market conditions with special considerations benchmarking to the current slump in oil prices.

• Income Approach

The Income Approach analyses the value of an asset by determining the present value of the net cash flow that are projected to be generated by the asset over its estimated economic useful life. The Income Approach was not used in developing the fair market value for the vessel.

The range of valuation of between USD10.5 million to USD 11 million have taken into account all three (3) abovementioned appraisal methods, as well as with reference to Physical Condition of the vessel, and the current utilisation of the asset were taken into consideration.

iv. The higher-yielding, long-tenured assets under item 5 – Rationale and Benefit for the Proposed Sale of Vessel refers to the Company’s strategy to strengthen its asset portfolio and recurring income. The FSO being sold was only suitable for short-term contracts, whereas the Group is targeting opportunities in the FSO/FPSO segment that offer longer tenures and stronger yields.

Accordingly, the Group is closely monitoring favorable market conditions, focusing on vessel types that are in high demand and offer strong commercial potential, while recognizing that such demand may be time-sensitive. This approach allows the Group to identify and act on suitable acquisition or conversion opportunities before market conditions shift.

v. Utilisation of Proceeds

RM'000

Expected time frame (from the completion of the Proposed Disposal)

Strategic funding for upcoming asset acquisitions, project mobilisation costs, and liquidity management*

44,252

within 24 months 

Estimated expenses for the proposed sale of vessel

200

Immediately upon completion 

Proceeds

44,452

*Includes readiness funding for new contracts, vessel acquisition deposits, and other corporate requirements to strengthen operational capacity.

vi. The Net Book Value was based on 31 December 2024. There are no changes to the Sale Proceed and Net Book Value to date.


This announcement is dated 15 August 2025.