Thursday 28 Mar 2024
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KUALA LUMPUR (July 6): Dagang NeXchange Bhd (DNeX) has secured a project worth between RM50 and RM75 million to supply up to 100 portable container systems (PCS) for petroleum products.

The PCS is a self-contained modular fuel storage and dispensing unit, which is targeted to be used for the supply of petrol at fish landing jetties in Malaysia, said DNeX in a Bursa Malaysia filing.

The contract was awarded by Petro Teguh Sdn Bhd to its wholly-owned unit OGPC Sdn Bhd.
 
According to DNeX, a PCS station with single storage is priced at RM500,000 per site/unit (psu) while the contract price for a PCS station with double storage is priced at RM750,000 psu.
 
DNeX’s group managing director Zainal Abidin Jalil said the project augurs well for the company, which is expanding its energy division, and will further strengthen the business segment and provide future growth.
 
“This [contract] is in line with our plan to pursue opportunistic contracting work in downstream sector leveraging on our expertise in delivering innovative engineered systems in short-cycle projects,” Zainal Abidin said in a separate media statement.
 
According DNeX, the project to supply up to 100 PCS nationwide is valid for two years starting from today. The project also covers maintenance and supply of PCS parts for the next 10 years.
 
This, said Zainal Abidin, will raise DNeX's earnings, improve resiliency across markets and position the company for sustainable value creation for its stakeholders.
 
“After a successful strategic transformation into a [company with] two core businesses, namely information technology and e-services as well as energy, DNeX has been making significant progress in both of its business divisions with this project adding on to its portfolio,” he added.
 
Based in Kota Damansara, Petro Teguh’s business is in the downstream oil and gas sector. Its core business is the construction of mini pump stations for Petronas Dagangan Bhd. A privately-held company, Petro Teguh is owned by Datuk Azmin Mustam Abdul Karim
 
Listed on Bursa Malaysia since 1983, shares in DNeX — formerly known as Time Engineering Bhd — dropped 1.5 sen or 2.5% to close at 58.5 sen today, for a market capitalisation of RM1.02 billion.

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