EATECH

0.170

+0.005 (+3%)

OTHERS E.A. TECHNIQUE (M) BERHAD (E.A. TECHNIQUE OR THE COMPANY) PROVISION OF LONG-TERM TIME CHARTER COASTAL VESSEL SERVICES FOR PETCO TRADING LABUAN COMPANY LIMITED (PTLCL)

E.A.TECHNIQUE (M) BERHAD

Type Announcement
Subject OTHERS
Description
E.A. TECHNIQUE (M) BERHAD (E.A. TECHNIQUE OR THE COMPANY)

PROVISION OF LONG-TERM TIME CHARTER COASTAL VESSEL SERVICES FOR PETCO TRADING LABUAN COMPANY LIMITED (PTLCL)

1. INTRODUCTION

 

E.A Technique (M) Berhad (“the Company”) refers to the announcement dated 16 May 2019 made by the Company in respect of Provision of Long-Term Time Charter Coastal Vessel Services (“the Contract”), and unless otherwise stated, the defined terms used in this announcement shall carry the same meaning as defined in the said Announcement. 

 

The Contract was awarded to the Company on 8 May 2019, of which the duration shall be for a primary period of five (5) years with five (5) extension options of one (1) year each upon expiry thereof at PTLCL’s option at an agreed fixed schedule of rates.

 

2. EFFECTIVE DATE OF MUTUAL TERMINATION

 

The Company wishes to announce that both parties, the Company and PTLCL have entered into an agreement for mutual termination of the Contract for Vessel 3. The contract value of Vessel 3 is approximately RM 79.84 million for the primary period (excluding the option period).

 

The mutual termination shall take effect on 18 March 2021.

 

3. FINANCIAL EFFECTS

 

The Company will lose revenue of approximately RM 79.84 million (for Vessel 3) for the financial year ending 31 December 2021 and beyond.

 

Notwithstanding this, the termination of the Contract for Vessel 3 will have no impact to the Contract for Vessel 1 & Vessel 2, of which the Contract for both vessels will continue as usual. These Vessels 1 & 2 will generate revenue of approximately RM 159.68 million (for the primary period) for the financial year ending 31 December 2021 and beyond.

 

In addition, the termination of the Contract of Vessel 3 is not expected to have any other material effects on the issued and paid-up capital and shareholding structure of the Company.

 

4. RISKS ASSOCIATED WITH THE CONTRACT

 

Barring any unforeseen circumstances, there are no significant risk factors associated with the mutual termination of the Contract of Vessel 3, as no claim shall arise against each party as a result of the termination.

 

5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

 

None of the Directors and major shareholders of persons connected to the Directors or major shareholders has any direct or indirect interest in the Contract of Vessel 3.

 

6. DIRECTORS’ STATEMENT

 

The Board of Directors of the Company is of the opinion that the termination of the Contract of Vessel 3 is in the best interest of the Company.

 

 

The approval on the release of the announcement was obtained from PTLCL on 2 April 2021.

 

 

The announcement is dated 2 April 2021.






Announcement Info

Company Name E.A.TECHNIQUE (M) BERHAD
Stock Name EATECH
Date Announced 02 Apr 2021
Category General Announcement for PLC
Reference Number GA1-30032021-00103