KUALA LUMPUR (Sept 18): Vizione Holdings Bhd has bagged a RM89.9 million contract from PBA Holdings Bhd to build submarine pipelines from Butterworth to the Macallum area on Penang Island.

Vizione said the new contract is part of the group's objective to tender for new projects and to expand its current customer base.

"This will mark the first direct letter of award (LoA) from the Penang state government after the 2018 general election. It further enlarges the group's order book and is expected to provide a steady stream of revenue for the group over the next two financial years," it added.

In a filing with Bursa Malaysia today, Vizione said its wholly-owned subsidiary Wira Syukur (M) Sdn Bhd has accepted the LoA from PBA's wholly-owned unit Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) to undertake the works, which fall under Package 3.

The duration of the contract is 21 months, it added.

"PBAPP intends to develop new water supply pipelines from Sungai Dua Water Treatment Plant in the mainland to the island. The laying of approximately 3.2km of 1,200mm diameter twin submarine pipelines from Butterworth to Penang," said Vizione.

"The implementation of the new Butterworth-Penang Island Twin Submarine Pipeline project takes into consideration future water demand with the objective to ensure efficient delivery of more treated water from the Sungai Dua Water Treatment Plant to Penang Island," it added.

The scope of work includes coastal reclamation and shore protection work of 4ha of land at Macallum area to provide space for pipeline stringing and launchway construction.

"The LoA will further increase and enhance the existing order book of the group. It will not have any effect on the issued and paid-up share capital and the substantial shareholders' shareholdings of Vizione as this LoA does not involve any issuance of new shares in Vizione," it said.

"Barring any unforeseen circumstances, this LoA is expected to contribute positively to the earnings and earnings per share of the group for the next two financial [years] as the earnings and any profit attributable to the group would be realised in stages over the tenure of the contract based on the progress of the project," Vizione added.

Vizione shares closed unchanged at 14 sen today, with 12.65 million shares done, for a market capitalisation of RM517.58 million.