Kim Heng : Award Of Horizontal Directional Drilling Work For Submarine Power Cable Installation

AWARD OF HORIZONTAL DIRECTIONAL DRILLING WORK FOR SUBMARINE POWER CABLE INSTALLATION FROM DONG FANG OFFSHORE CO. LTD.

SINGAPORE, 17 August 2022

The board of directors (the "Board") of Kim Heng Ltd. (the "Company", and together with its subsidiaries, the "Group" or "Kim Heng") is pleased to announce that its 50% owned indirect subsidiary, Thaitan International Pte. Ltd. ("Thaitan") has been awarded a contract for the installation of pipe conduits using horizontal directional drilling ("HDD") by Dong Fang Offshore Co. Ltd. ("DFO") relating to the submarine power cable installation works for an Offshore Wind Farm project in Taiwan. DFO is the largest offshore vessel owner in Taiwan participating in offshore construction projects. DFO will be providing the marine solutions in the HDD scope of work.

DFO is acting as subcontractor of Seaway 7 which is a leader in submarine cable installation, repair and maintenance serving the global offshore renewable energy.

Under the contract, Thaitan will provide design, engineering and drilling equipment for the purpose of the HDD works.

The contract is scheduled to commence in the 3rd quarter of 2022 and is expected to be completed by end of 2022.

Barring unforeseen circumstances, the abovementioned contract is expected to contribute positively to the Group's earnings per share and net tangible asset for the financial year ending 31 December 2022.

None of the directors, controlling shareholders or substantial shareholders of the Company has any interest, direct or indirect, in the abovementioned contract, save for their shareholdings in the Company (if any).

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About Kim Heng Ltd. (Bloomberg Ticker: KHOM:SP)

With over 50 years of experience, Kim Heng Ltd. ("Kim Heng") and its subsidiaries (collectively, the "Group") is an established integrated offshore and marine value chain services provider. Strategically based in Singapore, the Group offers a one-stop comprehensive range of products and services that caters to different stages of marine infrastructure projects and offshore oil & gas projects from oil exploration to field development and oil production. In keeping with the changing global energy scene towards cleaner energy forms, the Group has successfully ventured into the offshore wind renewable market. The Group will continue to broaden its service offerings to the clean energy and marine construction markets as part of its diversification away from the traditional oil and gas markets.

The Group's operations are primarily located in Singapore, with two shipyards strategically located at 9 Pandan Crescent and 48 Penjuru Road. The shipyards, with a combined waterfront of 205 metres, enable Kim Heng to carry out a multitude of services, including offshore rig repair, maintenance and refurbishment, fabrication, vessel newbuilding and afloat repairs as well as support new businesses in the renewable and marine construction markets.

As a one stop solutions provider in offshore logistics, the Group has a fleet of quality anchor handling tugs, barges and cranes for both sale and rent. The Group also provides other services such as maintenance, trading and sale of heavy equipment.

Kim Heng has built its brand over the years and has established relationships with world renowned customers from over 25 countries in the regions of Asia, USA, Latin America, Australasia, Middle East and Europe.

OFFSHORE WIND FARM SUPPORT SERVICES

• Fabrication & installation of different offshore turbine foundations, monopiles, tripods, jackets, suction buckets & gravity base structures
• Operation & maintenance services
• Marine transportation of windfarm components

HORIZONTAL DIRECTIONAL DRILLING ("HDD")

• Experienced turnkey contractor capable to undertake in submarine cable laying and pulling

OWNER & OPERATOR OF OFFSHORE SUPPORT VESSELS

• Marine transportation and towage services
• Marine salvage and oil spill response

OFFSHORE SUPPORT SERVICES

• Construction and fabrication works of components for drilling rigs and vessels
• Installation of offshore production modules and systems
• Supply of offshore drilling and production equipment
• Logistics, general shipping, warehousing & inventory management

SHIPBUILDING & SHIP REPAIR

• Newbuilding of vessels (Tugs, Pipe-Lay Barges, Power Barges, Accommodation Work Barges etc.)
• Purchase and refurbishment of vessels for onselling
• Afloat repairs, maintenance and refurbishment of offshore rigs, platforms & vessels

HEAVY EQUIPMENT RENTAL & SALES

• Leasing, sale, maintenance, import and export of heavy equipment
• Wide range of equipment and machineries including crawler, lorry and mobile cranes

For more information, please contact:

Jocelyn Tan

jocelyn.tan@kimheng.com.sgTel: (65) 67779990, Fax: (65) 67789990

This press release has been reviewed by the Company's Sponsor, SAC Capital Private Limited (the "Sponsor"). It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "Exchange") and the Exchange assumes no responsibility for the contents of this press release, including the correctness of any of the statements or opinions made or reports contained in this press release.

The contact person for the Sponsor is Ms Lee Khai Yinn (Tel: (65) 6232 3210) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.