Listed Companies' Announcement
FEDERAL INTERNATIONAL (2000) LTD
PRESS RELEASE - FEDERAL INTERNATIONAL'S SUBSIDIARY SECURES US$3.0 MILLION PROCUREMENT CONTRACT FOR TOTALFINAELF E & P INDONESIE'S TUNU NORTH OILY WATER TREATMENT DEAL
March 4, 2002, Singapore – SGX Mainboard-listed Federal International (2000) Ltd ("Federal"), an established regional flowline control products distributor and service provider in the oil and gas and related industries announced today that its subsidiary, Federal Hardware Engineering Co Pte Ltd ("FHE") has secured a contract worth US$3.0 million from PT Gunanusa Utama Fabricators ("Gunanusa").
The contract is for Federal to act as a procurement agent for Gunanusa with regards to its Tunu North Oily Water Treatment project for Totalfinaelf E & P Indonesie. Under the terms of the contract, Federal will supply all flowline control, piping materials and structural steels. This contract runs for 11 months from 27th February 2002 to 26th January 2003.
"This latest deal is testimony to the resilience of the regional oil and gas industry as well as Federal's leading position in this industry. It also illustrates that there are numerous business opportunities in Indonesia despite concerns over its political instability. We will continue to work diligently to take advantage of business opportunities in the oil and gas industry not only in Indonesia but, also elsewhere in the world," said Mr. K. K. Koh, Federal's Executive Chairman and CEO.
This contract is expected to have a favourable material impact on the profitability of Federal for the financial year ending 31 December 2002 as 90% of the materials will be expected to be delivered by the end of the financial year. However, the contract is not expected to have any material impact on the consolidated net tangible assets per share and earning per share of Federal for the current financial year.
"Over the past few months, we have invested in R & D and manufacturing operations in the U.S., the U.K. and Japan. We have also been steadily winning large contracts with MNCs," added Mr. Koh
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
PT Gunanusa 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 of Federal and, Federal owns 10% of PT Gunanusa.
Mr Iman Taufik, one of the substantial shareholders of Gunanusa, is also a non-executive director of Federal. The transaction is an Interested Person Transaction pursuant to Chapter 9A of the Listing Manual which Shareholders Mandate was obtained on 21 August 2000 and will be effective until our next Annual General Meeting.
The Audit Committee of Federal is of the view that the terms of the transactions are on normal commercial terms and are not prejudicial to the interests of Federal's shareholders.
Save as disclosed above, none of the Director or substantial shareholders of the Federal has any interest, direct or indirect, in the above said transaction.
Issued on behalf of Federal International (2000) Ltd
by Stratagem Consultants Pte Ltd
For further information, please contact:
Mr. Edwin Tay/ Ms Tham Moon Yee
Tel: 6227 0502 Fax: 6227 5663
March 4, 2002
Submitted by Chng Geok, Company Secretary on 04/03/2002 to the SGX