INTRODUCTION

The Board of Directors of Alam Maritim Resources Berhad ("AMRB" or "the Company") is pleased to announce that its wholly-owned subsidiary, Alam Maritim (M) Sdn Bhd, has received a letter of intent  from a international provider of oilfield services company based in Malaysia for the provision of one (1) unit straight supply vessel ["the Contract"].

DURATION OF CONTRACT

The Contract which had commenced in the fourth quarter 2012 is for a primary period of nine (9) months at an approximated value of RM8.1 million. The contract has an optional extension provision for another twelve (12) months at a value of up to approximately RM10.9 million, if exercised by the client.

FINANCIAL EFFECTS

The Contract is expected to positively contribute to the earnings and net assets of AMRB for the financial year ending 31 December 2013 and beyond. Notwithstanding this, the Contract is not expected to have any material effects on the share capital and shareholding structure of the Company.

RISKS ASSOCIATED WITH THE CONTRACT

The risks associated with the Contract are mainly operational risks such as accidents and unexpected breakdown of vessels. In mitigating such risks, the Company has developed a programmed maintenance schedule which stringently adheres to the International Safety Management (ISM) Standards in maintaining performance and seaworthiness of all its vessels.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

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

DIRECTORS' STATEMENT

The Board of Directors of AMRB is of the opinion that the acceptance of the Contract is in the best interest of the Company.


This announcement is dated 7 January 2013. 

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