KUALA LUMPUR (July 13): SapuraKencana Petroleum Bhd has clinched a contract from Oil and Natural Gas Corporation Ltd for the Mumbai High South Redevelopment Phase III Project on a turnkey basis worth US$273 million (approximately RM1.038 billion).

In a filing with Bursa Malaysia today, SapuraKencana (fundamental: 0.85; valuation: 0.8) said it secured the contract via its wholly-owned subsidiary Kencana HL Sdn Bhd (currently known as SapuraKencana HL Sdn Bhd).

It said the job scope includes but is not limited to surveys, design, engineering, procurement, fabrication, transport and installation, hook-up, and commissioning of three new Well Head platforms, around 116km of submarine pipelines, around 7.5km of submarine cable.

It added the contract also covers of modification works on existing platforms including clamp-on works on two platforms, subsea repair works on three jackets and D1C pile remedial works.

"The contract value is US$211.95 million, (plus) €7.71 million and Indian Rupee of 3.41 million (approximately US$273 million) including Taxes and Duties, and excluding the Service Tax in India," it said.

SapuraKencana said the contract agreement was signed by both parties and executed on June 27, 2015 at Mumbai, India.

The oil and gas services company expects the overall project to be completed on April 30, 2017.

"The award is expected to contribute positively towards the earnings and net assets per share of SapuraKencana for the financial years ending Jan 31, 2016 (FY16) and Jan 31, 2017 (FY17)," it said.

SapuraKencana share price inched up three sen or 1.26% to close at RM2.41 today, bringing its market capitalisation to RM14.261 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)