Marine & General gets one-year extension on vessels contract

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KUALA LUMPUR (Sept 3): Marine & General Bhd (M&G) has received a one-year extension on its contract from Repsol Oil & Gas Malaysia Ltd for the provision of two anchor handling tug supply vessels.

The contract was awarded to M&G's subsidiary Jasa Merin (Malaysia) Sdn Bhd on Oct 4, 2017.

It has now been extended by one year, M&G said in a filing to the stock exchange.

The extended contract, estimated to have a value of about RM25 million, is expected to contribute positively to the earnings of the group for the financial year ending Dec 31, 2018 and beyond, the group said.

"The contract is not expected to have any effect on the share capital and shareholding structure of M&G. There is no significant risk involved in Jasa Merin fulfilling its obligations under the contract," it said.

M&G said the risk factors affecting the contract are mainly operational risks such as accidents and unexpected breakdown of the vessel.

M&G shares closed unchanged at 10 sen today for a market capitalisation of RM72.39 million. Over the past 12 months, the counter has fallen some 63.64%.