KUALA LUMPUR (Aug 29): Destini Bhd has bagged a US$5.2 million (RM21.17 million) contract from South Korea-based Posco Daewoo Corp for the provision of tubular running services (TRS) in Myanmar.

The contract, awarded to the group’s unit Destini Oil Services Sdn Bhd on Aug 8, is expected to contribute positively to Destini's earnings.

In a statement today, president and group chief executive officer Datuk Rozabil Abdul Rahman said the group has had a foothold in Myanmar since 2012, when it entered the country by providing TRS to Petronas Carigali Sdn Bhd, and plans to consolidate its position in the country by bidding for more projects there.

“The award of this contract reinforces Destini's position as a global TRS provider. Furthermore, it showcases Destini's recognition in the industry by another major international company," Rozabil said.

“In line with our strategy to enhance Destini’s long-term earnings visibility for its exploration and development business, we will focus on expanding and strengthening Destini’s capabilities beyond local shores. This will enhance the group’s global footprint as an oil and gas player,” he added.

Separately, the group announced that its net profit for the second quarter ended June 30, 2018 (2QFY18) has fallen 8% to RM5.63 million, from RM6.13 million a year ago, as revenue retreated about 9% to RM149.07 million from RM162.97 million, on lower contribution from its aviation manufacturing services.

For the group’s first half (1HFY18), net profit fell 17% year-on-year to RM13.38 million from RM16.18 million, as revenue retreated 26% to RM286.64 million from RM386.68 million.

Moving forward, Destini expects the group’s operating environment to remain challenging and competitive. Nevertheless, its board foresees its operational results for FY18 to be "satisfactory".

Destini’s shares closed up one sen or 3.51% to 29.5 sen today, with 2.32 million shares traded for a market capitalisation of RM340.79 million.