Listed Companies' Announcement
FEDERAL INTERNATIONAL (2000) LTD
PRESS RELEASE - PROCUREMENT CONTRACT FOR FEDERAL INTERNATIONAL FOR TOTALFINAELF OILFIELD PROJECT INCREASES FROM US$29.2M (S$52.3 M) TO US$33.8 (S$59 M)
PROCUREMENT CONTRACT FOR FEDERAL INTERNATIONAL FOR TOTALFINAELF OILFIELD PROJECT INCREASES FROM US$29.2M (S$52.3 M) TO US$33.8 (S$59 M)
August 1, 2003, Singapore – SGX Mainboard-listed Federal International (2000) Ltd ("Federal"), an integrated engineering and procurement specialist supporting the energy and infrastructure sectors in the region, announced today that the value of the procurement awarded to its subsidiary, Federal Hardware Engineering Co Pte Ltd ("FHE") has increased from US$29.2 million (S$52.3 million) to US$33.8 million (S$ 59 million).
FHE has appointed by its strategic partner, PT Gunanusa Utama Fabricators, to be the procurement agent with regard to its Peciko Field Development Project Phase 4 for Totalfinaelf E & P Indonesie. Under the terms of the contract, Federal will supply all flowline control products, piping materials and structural steels for two satellite wellhead platforms. This contract runs for 20 months from October 2002 to June 2004.
"We are pleased to note the contract value has increased for this project in Indonesia, a key oil-producing country with a booming oil and gas sector. Together with P T Gunanusa, Federal is all set to strengthen its leading position in the fabrication and EPC sector to leverage on the numerous business opportunities in the oil and gas industry in Indonesia," said Mr. K. K. Koh, Federal's Executive Chairman and CEO.
The increase in the contract is expected to have a positive impact on the profitability and earnings per share of Federal for the financial year ending 31 December 2003. In addition to the transaction profit, Federal will equity account for the 20% profit in Gunanusa as at 31 December 2003. The contract is also expected to have a favourable material impact on Federal's consolidated net tangible assets per share for the financial year ended 31 December 2003.
None of the Directors or substantial shareholders of Federal has any interest, direct or indirect in the above said transaction.
About Federal International
Federal is principally involved in the distribution of flowline control products (including valves, structural steel, steel flanges/ connectors and pipe fittings) to the oil and gas, power, chemical and pharmaceutical industries. By moving upstream into the design and manufacture of specialised valves and related products, Federal aims to be an integrated service provider and procurement specialist in the energy and infrastructure industries offering a complete one-stop service package.
About PT Gunanusa Utama Fabricators
PT Gunanusa Utama Fabricators is a leading Indonesian fabrication yard involved in executing large turnkey projects in offshore platform projects, container cranes, boilers and pressure vessels. PT Gunanusa is a key customer and Federal also has 20% equity interests in PT Gunanusa.
Issued on behalf of Federal International (2000) Ltd
by Stratagem Consultants Pte Ltd
For further information, please contact:
Ms Gwen Ling/ Ms Tham Moon Yee
Tel: 6227 0502 Fax: 6227 5663
Submitted by Koh Kian Kiong, Director on 01/08/2003 to the SGX