KUALA LUMPUR (Nov 3): Alam Maritim Resources Bhd announced that its wholly-owned subsidiary – Alam Maritim (M) Sdn Bhd – has bagged a contract worth US$9.56 million RM31.67 million) from a local oil and gas services to demobilise a floating storage facility.

In a filing to Bursa Malaysia today, Alam Maritim said the contract, starting Oct 6,  is expected to contribute positively to its earnings and net tangible assets for the financial year ending Dec 31, 2014 and beyond.

Alam Maritim said that the risks associated with the contracts are mainly operational risks such as accidents and unexpected breakdown of vessels and delays due to human, mechanical and logistic factors as well as weather condition.

“In mitigating such risks, the company will closely monitor all planned activities as per the project schedule and Alam Maritim adheres to the Quality, Health, Safety and Environment - Integrated Management System in ensuring to continually deliver reasonable quality services,” it said in a statement.

Alam Maritim added that it has developed a programmed maintenance schedule which stringently adheres to the International Safety Management (ISM) Standards in maintaining performance and seaworthiness of all vessels in its fleet.

Shares in Alam Maritim have been trending downwards from RM1.64 on July 7 to RM1.07 today giving it a market capitalisation of RM989.2 million. The stock has declined 31.85% or 50 sen year-to-date.