1. INTRODUCTION
The Board of Directors (“Board”) of Icon Offshore Berhad (“ICON/Company”) is pleased to announce that its Brunei subsidiary company, Icon Bahtera (B) Sdn. Bhd. (“IBSB”) has received an award on the charter of its vessels namely Icon Valiant and Icon Aliza ("Vessels") , from charterer Zell Transportation Sdn. Bhd. (“ZT”) (“Award”).
2. BACKGROUND/DETAILS OF THE AWARD
Brunei Shell Petroleum Co Sdn Bhd (“BSP”) and ZT have signed the contracts relating to the charter of the vessels (“BSP Contract”). ZT, in turn, as the contract holder for the BSP Contract has entered into an arrangement for the provision of offshore support vessels and chartering services with IBSB for, amongst others, the charter of the Vessels to ZT.
The expected commencement hire date for Valiant is 1st March 2021 for a primary contract duration of six (6) years with two (2) -time extension option of one (1) year each and ten (10) months campaign period per year. Meanwhile the expected commencement hire date for Aliza is 1st February 2021 for a primary contract duration of six (6) years with two (2) -time extension option of one (1) year each.
3. FINANCIAL EFFECTS ON ICON
The Award is expected to contribute positively to the earnings, order book and net assets of ICON for the financial year ending 31 December 2021 and beyond. Notwithstanding this, the Award is not expected to have any material effect on the share capital and shareholding structure of ICON.
4. RISKS ASSOCIATED WITH THE AWARD
The risks associated with the Award is mainly operational risks such as accidents and unexpected breakdown of vessels. In mitigating such risks, ICON carries out routine drydocking inspections, afloat repairs and regular maintenance based on the Company’s comprehensive planned maintenance programme. Together with ICON’s strict health, safety, security and HSSE policy and procedures, ICON is of the view that the likelihood and impact of these risks are considered to be manageable within an acceptable level.
5. DIRECTORS' AND SHAREHOLDERS' INTEREST
None of the directors, major shareholders of ICON and/or persons connected with the directors or its major shareholders have any interest, direct or indirect in the Award.
6. DIRECTORS' STATEMENT
Our Board is of the opinion that the Award is in the best interest of IBSB and the holding company, ICON.