The Board of Directors of Citaglobal wishes to announce that Citaglobal Engineering Services Sdn Bhd (“CESSB”), a wholly-owned subsidiary of the Company, had on 1 June 2023 accepted a Letter of Award dated 31 May 2023 from PDPB as the contractor for decommissioning, dismantling, demolition and disposal of balance of plant at PDPP for a lump sum amount of RM13,300,000 (“Contract”).
The Contract shall be completed within 12 months from the commencement date.
The acceptance of the Contract is in the ordinary course of business of CESSB.
The Contract will further increase and enhance the existing order book of Citaglobal and its subsidiaries (“Group”) to approximately RM1.0 billion.
The Contract will not have any effect on the issued share capital and the shareholdings of the substantial shareholders of the Company.
The Contract is expected to contribute positively to the earnings, earnings per share and net assets of the Group during the Contract period.
The Company does not foresee any exceptional risk other than the normal operational risks associated with the Contract. Nevertheless, the Company will take the necessary steps to mitigate the risk as and when it occurs.
None of the Directors and major shareholders of the Group and/or persons connected to them has any interest, whether direct or indirect, in the Contract.
Information on the PDPP
PDPP is a project developed and owned by PDPB, which is a wholly-owned subsidiary of Malakoff Corporation Berhad. PDPP received the license to operate as an Independent Power Producer (IPP) from the Government of Malaysia in 1993 and to develop, own and operate the 440 megawatts (MW) gas-fired power plant at Tanjung Gemok, Port Dickson which was commissioned in 1995. After many years of being in operation, PDPP ceased operation on 28 February 2019 due to the expiry of the extended Power Purchase Agreement (PPA).
This announcement is dated 1 June 2023.