INTRODUCTION

With reference to the Malaysia Marine and Heavy Engineering Holdings Berhad’s (MHB or Company) announcements and press releases dated 29 November 2023 and 4 June 2024 with regard to the award of Subcontracts to build offshore substations (OSS) high voltage direct current (HVDC) platforms under TenneT TSO’s (TenneT) 2GW programme to the Company’s wholly-owned and major subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) by Petrofac International (UAE) LLC (Petrofac UAE) (the Subcontracts) with TenneT as the ultimate client, the Board of Directors (Board) would like to provide the following update.

THE UPDATE

Petrofac Limited (Petrofac) had on 23 October 2025 issued an announcement to the London Stock Exchange that it had received notification from TenneT terminating its scope of work on the 2GW programme with immediate effect. This Petrofac announcement did not specifically refer to the Subcontracts between MMHE and Petrofac UAE, a subsidiary of Petrofac. 

Pursuant to that announcement, TenneT as the ultimate client is undertaking the novation of the Subcontracts to formalise the transfer of contractual obligations to ensure its continuity. During this period, MMHE is continuing to perform its obligations under the Subcontracts.

FINANCIAL AND OPERATIONAL RISKS 

The Board is of the view that the Subcontracts are expected to continue to contribute positively to the earnings and net assets per share of MHB for the financial year ending 31 December 2025 and beyond up to the completion of the Subcontracts. MMHE remains vigilant to protect the financial interest of the MHB Group in the Subcontracts. On the operations front, MMHE has considered the risks and plans are in place to ensure the successful execution of the Subcontracts.

DIRECTORS' AND MAJOR SHAREHOLDERS’ INTEREST

None of the directors or major shareholders of MHB or people connected to them has any interest, direct or indirect, in the Subcontracts. 

DIRECTORS' STATEMENT

The Board will continue to monitor the issue and make further announcements of any material developments in accordance with the requirements of Bursa Malaysia Securities.

This announcement is dated 14 November 2025.