1. Introduction
KNM Group Berhad (KNM) is pleased to announce that its wholly owned subsidiary, KNM Process Systems Sdn Bhd (KNMPS), had successfully secured new awards for YTD 2015, for about USD56.67 Million (equivalent to about RM204.01 million) for:-
a. Pengerang Integrated Petroleum Complex (PIPC) Project - from Toyo Engineering Corporation/Toyo Engineering & Construction Sdn Bhd/Toyo Thai Malaysia Sdn Bhd (Toyo Group), for supply of Columns, Reactors, Drums and Tanks totaling USD33.53 million and from Tecnicas Reunidas S.A/Tecnicas Reunidas Malaysia Sdn Bhd (TR Group), for supply of Reactors, Columns and Pressure Vessels totaling USD15.17 million.
b. Turkmengas Petrochemical Complex Project (TGPC Project) in Turkmenistan from Toyo Engineering Corporation Japan, for USD7.97 million for supply of Towers.
The contract period for the above Projects runs between 12 months to 18 months.
2. Directors' and major shareholders' interest
None of the directors or major shareholders of KNM, or any persons connected to them, has any direct or indirect interest in the above Projects.
3. Effect of the Projects
The Projects are expected to contribute positively to KNM Group's earnings for the financial years ending 31 December 2015 and 2016.
4. Risk Factors
The Projects are subject to certain risks mainly in the power, oil and gas industries. These include changes in general economic conditions such as, but not limited to inflation, taxation, foreign exchanges, interest rates, labour and material supply, changes in business and operating conditions such as, but not limited to government and statutory regulations and deterioration in prevailing market conditions.
The Projects do not alter the risk profile of KNM as KNM Group is already operating in these industries and hence would continue to be exposed to risk factors that they currently face whilst operating in the industry.
Although KNM Group with its vast experience may undertake efforts to mitigate the various risks, there is no assurance that any change in the above factors will not have a material adverse effect on the business and operations of KNM and/or KNMPS.
This announcement is dated 9 April 2015.