Kim Heng Offshore & Marine Holdings Limited, an established integrated offshore and marine value chain services provider, announced earlier today that its wholly-owned subsidiary Kim Heng Marine & Oilfield Pte Ltd (KHMO) had signed the Memorandum of Understanding (MOU) with Hung Hua Construction Co. (HHC) to establish a long term business cooperation.
HHC is a marine construction company participating in dredging and maritime construction projects. For more than 30 years, HHC has been engaging in dredging of waterways, navigation channels, constructing of dykes, foundation piles, breakwaters, projects of large reclamation and port construction.
Under this MOU, KHMO will provide offshore vessels, tugboats and barges to HHC by way of charter or sale or joint ownership and operation, which will be used for purpose of transportation, delivery and installation of windfarm foundations.
KHMO will explore having joint ownership and operation of the vessels to be used for a specified project, and other upcoming windfarm projects in Taiwan. Both parties will work towards signing a formal contractual agreement and charter party agreements.
The MOU will remain in force for a period of one year, and renewable as mutually agreed by the parties. The MOU is not expected to have a material financial impact on the Group’s net tangible assets per share and earnings per share for the financial year ending 31 December 2019.
The MOU is subject to, amongst other things, the execution of the definitive agreements in relation to the above and there is no certainty or assurance that the definitive agreements will be entered into. The Company will make further announcements when there are material updates to the MOU and related matters contained in this announcement.
Source: Kim Heng