EA Technique bags vessel supply contracts worth RM94.5m

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KUALA LUMPUR (Dec 20): E.A. Technique (M) Bhd has bagged two contracts for the supply and operation of vessels worth a collective RM94.5 million, according to the group's stock exchange filings.

The first is a contract from Petroliam Nasional Bhd worth RM66.3 million to provide and operate two units of 40-tonne bollard pull harbour tugs for Kertih Port Sdn Bhd, and one harbour tug cum support vessel for Petronas Penapisan (Terengganu) Sdn Bhd.

The five-year contract, which comes with two extension options one year each (5+1+1), was secured vide a letter of award dated Nov 29.

The second contract, worth RM28.2 million, is from Sungai Udang Port Sdn Bhd for the provision of a 40-tonne bollard pull harbour tug, one multi-purpose mooring boat, and two 60-tonne bollard pull harbour tugs. The contract was secured vide a letter of award dated Dec 10.

This contract is for a primary period of two years, with an option to extend for another one — except for one of the 60-tonne bollard pull harbour tugs, which has a primary contracted period of six months, with an extension option of another six.

"These contracts are expected to contribute positively to the earnings and net tangible assets of EA Technique for the financial year ending Dec 31, 2019, and beyond," EA Technique said in the filings.

The group's shares closed 1.5 sen or 4.55% lower at 31.5 sen today, giving it a market capitalisation of RM158.76 million. In the past one year, the stock has retreated 16%.