Muhibbah Engineering Bhd and its consortium partner have clinched a RM1.07 billion job from Petronas Gas Bhd (PetGas) for works related to the latter’s liquified natural gas (LNG) regasification project in Melaka.
The company told Bursa Malaysia yesterday the contract is for the engineering, procurement, construction, installation and commissioning of the regasification project.
Muhibbah did not, however, specify its portion of equity in the consortium with partner Perunding Ranhill Worley Sdn Bhd.
It added that under the contract, the consortium will undertake the construction of the LNG regasification unit, island berth and subsea pipeline.
Muhibbah said the facilities will be located within the vicinity of Sungai Udang Port, Melaka and have a maximum send-out gas capacity of 3.8 million tonnes per annum.
It said central to the whole facilities is the LNG Regasification Plant, which will regasify LNG, and once regasified, the gas will be transmitted into the Peninsular Gas Utilisation (PGU) pipeline network.
The construction works will commence in April and are expected to be completed at the end of July 2012.
PetGas had last December signed a heads of agreement with Petroliam Nasional Bhd (Petronas) for the development of the project and provision of the project.
It had said the project would include two floating storage units (FSUs) to receive and store LNG, an island jetty and regasification units to regasify LNG, and subsea and onshore pipelines to transport the regasified LNG to the PGU pipeline network.
Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) is said to be one of the frontrunners for the FSU job, which has yet to be awarded.
It was reported earlier this month that MISC Bhd may provide the two FSUs, which will be refurbished by MMHE. It was said that MISC would utilise its two Tenaga class vessels, namely the Tenaga Satu and Tenaga Empat, and convert them into FSUs for the initiative.
Meanwhile, the RM1.07 billion PetGas contract is expected to contribute positively to Muhibbah’s earnings and net assets for the current and future financial years.
The contract, which is its first for the new year, will boost Muhibbah’s order book that stood at some RM2.78 billion as at November 2010.
The RM2.78 billion comprises RM1.97 billion from its infrastructure construction division, RM429 million from the cranes segment and RM381 million from the shipyard division. The company had said the outstanding secured order book will last it till 2013.
It is worth noting that Muhibbah was also named by analysts as one of the possible contractors for the first phase of the main construction works for the estimated RM7 billion light rail transit (LRT) extension in the Klang Valley.
For the nine-month period ended Sept 30, Muhibbah posted a net profit of RM24.72 million, up 22% from RM20.3 million a year ago. Revenue was 26% lower at RM1.16 billion from RM1.57 billion.
The stock yesterday closed unchanged at RM1.67 yesterday, at 15.2 times forward price-earnings multiple. - by Isabelle Francis, theedgemalaysia.com
No comments:
Post a Comment