Dayang Enterprise bags five-year contract from Murphy Oil

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KUALA LUMPUR (July 27): A wholly-owned subsidiary of Dayang Enterprise Holdings Bhd, Dayang Enterprise Sdn Bhd (DESB), has secured a five-year contract from Murphy Sarawak Oil Co Ltd and Murphy Sabah Oil Co Ltd for the provision of Pan Malaysia maintenance, construction and modification (PM-MCM).

In a filing with Bursa Malaysia today, Dayang said there is no firm value onthe contract, as it depends on work orders to be issued to it at a fixed schedule of rates.

“The duration of the contract is for a primary period of five years effective from July 17, 2018 and shall expire on July 16, 2023 with an option to extend for a period of one year,” it said.

The risk factors affecting the award include execution risks such as availability of skilled manpower and materials, changes in prices of materials, as well as changes in political, economic and regulatory conditions, Dayang added.

The contract is expected to contribute positively to group's earnings over the duration of the contract and has no effect on the issued capital of the group.

Dayang shares closed one sen or 1.43% higher at 71 sen today, with 494,100 shares traded, giving it a market capitalisation of RM685.02 million.