KUALA LUMPUR (June 5): Daya Materials Bhd has signed a master agreement with Schlumberger in Russia for the provision of non-explosive radical cutting torch (RCT), perforating torch cutter (PTC Puncher) and related energetic and thermite based solutions services.
In a filing with Bursa Malaysia today, Daya Materials said its subsidiary Daya Maxflo Sdn Bhd (DMSB) has entered into the agreement with Schlumberger Logelco Inc, Schlumberger's operating branch and representative office in Russia.
It noted that the contract will be effective from June 5, 2018 until Dec 31, 2020.
According to the filing, the contract does not constitute a commitment for any specific quantity of work order. Instead, the delivery of the contract will be addressed in a purchase order to be issued to DMSB from time to time when the services are required.
Hence, until the specific work orders are issued, the contract is not expected to have a material effect on the earnings of Daya Materials group of companies for the financial year ending Dec 31, 2018.
"Upon issuance of such specific work order, the company expects the contract to contribute positively to the future earnings of the Daya Materials group of companies," it said.
At market close today, shares of Daya Materials were down 0.5 sen or 14.29% at 3 sen for a market capitalisation of RM61.29 million.