KUALA LUMPUR (May 25): Kelington Group Bhd’s wholly-owned subsidiary Kelington Technologies Sdn Bhd (KTSB) has bagged a RM70 million civil and structural works job.

In its filing to the exchange today, it was revealed that KTSB has obtained a Letter Of Award (LOA) from Meranti Tiga Sdn Bhd to undertake civil and structural works and provide mechanical and electrical services for a project located in Batang Padang, Perak.

The LOA is valued RM70 million, with a completion period of 17 months for the works. The contract is targeted to be completed by September 2017 and it is not renewable.

Kelington said the LOA is expected to contribute positively to the earnings and net assets of the group for the financial year ending Dec 31, 2016 (FY16) and FY17.

In a separate filing to the exchange today, Kelington reported a 87.6% plunge in net profit for the first financial quarter ended March 31,2016 (1QFY16) to RM257,000 or 0.12 sen a share, from RM2.08 million or 0.96 sen a share a year ago, due to impairment losses on certain projects, trade receivables and amounts owing from contract customers.

Revenue for 1QFY16 however more than doubled to RM78.48 million, from RM38.52 million a year ago, due to increase in contributions from Singapore projects.

The engineering services provider’s shares were not traded today. Kelington shares last traded on May 24 at 26 sen, for a market capitalisation of RM55.8 million.