KUALA LUMPUR (Jan 16): Practice Note 17 (PN17) listed company Kejuruteraan Samudra Timur Bhd (KSTB) announced it was awarded a two-year tubular inspection and maintenance services contract from PrimeSourcing International Sdn Bhd (PSI), at the end of December last year.

KSTB told Bursa Malaysia this evening that the contract period commence on Jan 1, and will expire on Dec 31, 2016. Upon expire, PSI has the option to extend another two-year term, on mutually-agreed rates.
 
However, KSTB did not specify the value of the contract, as it stated the value of such kind of services very much depends on the demand and activity levels of PSI during the contracted period.

KTSB’s tubular inspection and maintenance services division has an annual turnover of about RM10 million. This is the business left with the company, subsequent to the disposal of its oil and gas upstream services division in early 2014, which resulted in it having a cash pile of RM104.36 million.

KTSB (fundamental: 2.4; valuation: 1.2) has until April 2015 to secure itself a new core business, in order to be uplifted from the PN17 status.

The counter closed unchanged at 48.5 sen today, giving it a market capitalisation of RM69.39 million.

(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.)