Frankly Speaking: Exceptions to the rule

This article first appeared in The Edge Malaysia Weekly, on June 3, 2019 - June 09, 2019.
-A +A

Last week, oil and gas service provider Perdana Petroleum Bhd announced that its wholly-owned subsidiary Perdana Nautika Sdn Bhd had, on April 12, acknowledged receipt of a letter of appointment, dated April 9, as panel contractor from national oil company Petroliam Nasional Bhd (Petronas).

According to Perdana, the appointment letter was in relation to the award of an umbrella contract for six anchor-handling tug and supply vessels and five accommodation work barges.

It added that on May 29, it “received approval from Petronas to release the announcement regarding the award of the umbrella contract”.

The contract is likely to be significant as it involves 11 vessels all in, and is for three years with an option for a one-year extension.

Perdana pointed out that it is likely to supply crew and equipment to provide 24-hour service in assisting and servicing drilling rigs, offshore installation, towing and anchor jobs, which makes the contract sound all the more lucrative.

What was not mentioned was the value of the contract or at least an estimation of it.

Perdana explained: “The total value of the umbrella contract will depend on the actual number of days the vessels are on hire based on instructions during the contract period.” It added that the contract is expected to contribute positively to its earnings and net assets for its financial years ending Dec 31, 2019 to 2022.

However, Bursa Malaysia’s listing requirements clearly state that investors and the public should be kept informed of all facts or information that might affect their interests and, in particular, full, accurate and timely disclosure should be made of any information that may reasonably be expected to have a material effect on a security’s value or market activity.

However, there seem to be exceptions, as Perdana’s case proves.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.