INTRODUCTION

The Board of Directors of Marine & General Berhad (“M&G”) is pleased to announce that its subsidiary, Jasa Merin (Malaysia) Sdn Bhd (“JMM”), received one (1) work order award from PETRONAS Carigali Sdn. Bhd. (“PCSB”) for the Provision of one (1) unit of Anchor Handling Tug and Supply Vessel for PCSB (“Contract”) on 17 January 2020. JMM received the approval to release the announcement regarding the award on 12 February 2020.

DURATION OF CONTRACT

The Contract, which will commence in mid-February 2020 is for a primary duration of three hundred and five (305) days from the commencement date.

RISK FACTORS

Risk factors affecting the Contract are mainly operational risks such as accidents and unexpected breakdown of the Vessel. Notwithstanding this, JMM shall ensure strict compliance with the safety and operational procedures in the execution of the 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 its Vessel.

FINANCIAL EFFECTS

The Contract are estimated to have a cumulative value of approximately RM14 million for the primary term. It is expected to contribute positively to the earnings of M&G for the financial period ending 30 April 2020 and thereafter within the duration of the Contract. The Contract is not expected to have any effect on the share capital and shareholding structure of M&G. There are no significant risks involved in JMM fulfilling its obligations under the Contract.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders and/or persons connected to the Directors and/or major shareholders have any direct or indirect interest in the Contract awarded.

DIRECTORS’ STATEMENT

The Board of Directors of M&G is of the opinion that the acceptance of these Contract is in the best interest of M&G.

This announcement is dated 13 February 2020.