INTRODUCTION

The Board of Directors ('the Board') of KKB Engineering Berhad ('KKB') is pleased to announce that KKB has received a Letter of Award from LAKU Management Sdn. Bhd. ('LAKU') for the supply, delivery, installation, testing and commissioning of new 800mm diameter mild steel pipeline along Jalan Saberkas and Jalan Taman Negara Similajau, Bintulu ('LAKU Contract').

KKB has also received a Letter of Award from 2H Offshore (Asia Pacific) Sdn. Bhd. ('2H') to execute on fast-track mode the fabrication of grillage, loadout and sea-fastening for Marine Jetty Installation Project ('2H Contract').

The combined total contract sum for the abovementioned contracts is worth approximately RM17.7 million (Ringgit Malaysia Seventeen Million Seven Hundred Thousand Only).

DURATION OF CONTRACT

The LAKU Contract will commence July 2021 and to be completed within 2Q2022.

For 2H Contract, it is scheduled to be completed within 4Q2021.

FINANCIAL EFFECTS

The contracts will have no effect on Share Capital of KKB and is expected to contribute positively towards the earnings and net assets of the Group for the duration of contracts.

RISK FACTORS

Risk factors affecting the contracts include execution risks such as the four phases of National Recovery Plan Malaysia or further Enhanced Movement Control Orders, supply chain disruptions and availability of materials, skilled manpower, equipment or specialized machineries, Forex and change in pricing, weather conditions and/or political, economic and regulatory conditions.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS

None of the Directors and/or major shareholders and/or person connected with them has any interest, direct or indirect in the abovementioned contracts.

DIRECTORS' STATEMENT

The Board is of the opinion that the abovementioned contracts are in the best interests of KKB and its Group.

This Announcement is dated 19 July 2021.

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Disclaimer

KKB Engineering Bhd published this content on 19 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2021 03:21:09 UTC.