KUALA LUMPUR (Oct 17): Kumpulan Perangsang Selangor Bhd (KPS) said its 51%-owned subsidiary Aqua-Flo Sdn Bhd has bagged a RM162.5 million contract from Pengurusan Air Selangor Sdn Bhd (Air Selangor) to supply and deliver chemicals.

Under the contract, Aqua-Flo will be providing chemicals to water treatment plants in Selangor, Kuala Lumpur and Putrajaya for a two-year period, commencing Nov 1.

"The contract is expected to contribute positively to KPS for the financial years ending Dec 31, 2018 to 2020," it said in a statement today.

KPS chief executive officer Ahmad Fariz Hassan said the contract was secured through an open tender process.

"In setting higher goals, we intend to bank on Aqua-Flo’s strong credentials in ensuring safe water management systems to extend our reach beyond Selangor.

"To date, we have begun to supply chemicals to water treatment plants in five other States. Given our progress so far, we are optimistic of further improving our order book,” he added.

In May 2016, Aqua-Flo had secured three contracts from PNSB Water Sdn Bhd, Konsortium ABASS Sdn Bhd and Konsortium Air Selangor Sdn Bhd, worth a combined RM98 million over a period of two years. These contracts were then extended for a further period of five and a half months for a total of RM25.1 million in May.

Shares in KPS finished one sen or 0.75% higher at RM1.35 today, for a market capitalisation of RM725.48 million. The stock's share price has fallen 33% since hitting a 20-year high of RM2.02 on July 23.