KUALA LUMPUR: Orkim Bhd
’s wholly-owned subsidiaries, Orkim Leader Sdn Bhd and Orkim Power Sdn Bhd, have entered into side letters to extend their respective existing consecutive voyage charter (CVC) contracts with Shell Malaysia Trading Sdn Bhd and Shell Timur Sdn Bhd.
“The value of the CVC contracts is on ‘cargo-nominations’ basis whereby ‘cargo-nominations’ will be issued at the discretion of the Charterers based on the schedule of rates as set forth in the CVC contracts, throughout the duration of the contracts. As such, there is no firm value for the CVC contracts,” Orkim said in a filing with Bursa Malaysia.
The contracts were initially entered into for a one-year period from March 1, 2024 to Feb 28, 2025, and were subsequently extended to Feb 28, 2026.
Under the latest extension, the parties may further extend the contracts for another year, up to Feb 29, 2028, subject to the charterers’ option and existing contractual terms.
Orkim expects the CVC contracts to contribute positively to its earnings and net assets over the duration of the contracts.
