Kim Heng announced that its wholly-owned subsidiary Kim Heng 5G2 - Offshore & Marine has entered into a non-binding memorandum of understanding (MOU) with KOMS to co-operate in relation to offshore windfarm projects and other offshore projects in South Korea.

 

Pursuant to the MOU, it shall remain in force for a period of five years, subject to renewal by mutual agreement. Each party may terminate this MOU by providing thirty days&rsquo notice to the other party.

 

KOM is a leading offshore global solution provider, offering engineering, procurement and Commissioning (EPC) services including but not limited to offshore field development, pipe laying, subsea structure, transport & installation, modifications, upgrades, operation, maintenance, decommissioning and removals of rigs.

 

The group says that it will provide the necessary updates as and when there are material developments to the MOU and/or execution of a definitive agreement.

 

Kim Heng Shipbuilding and Engineering (KHSE), a wholly-owned subsidiary of Kim Heng 5G2 0.93% has been awarded an additional variation contract totaling US$7.8 million ($10.33 million).

 

KHSE will provide design, engineering, modification and shipbuilding for a marine-based asset, with the project expected to be completed by the fourth quarter of 2024.

 

&ldquo The group remains well positioned and equipped with shore-based marine assets and offshore vessels that enable us to leverage our knowledge in the offshore renewable industry throughout Asia and the US to support the global energy transition towards a sustainable future&rdquo , says Thomas Tan, executive chairman and CEO.

 

Barring unforeseen circumstances, Kim Heng expects the contract to contribute positively to its earnings per share and net tangible assets for FY2023 and FY2024 ending 31 December 2023 and 31 December 2024.