KUALA LUMPUR (Oct 15): Advancecon Holdings Bhd has bagged two contracts worth a combined value of RM50.49 million for sub-contract works in Sarawak and Seremban respectively.

In a filing with Bursa Malaysia today, Advancecon’s unit Advancecon Infra Sdn Bhd (AISB) has accepted the Letter of Award (LoA) from its associate company Advancecon (Sarawak) Sdn Bhd (ASSB) to be the sub-contractor for the Upper Rajang Development Agency (URDA) Package 2: Road Infrastructure Projects in Sarawak for the total sub-contract sum of RM38.67 million.

The scope of works includes soil investigation, geotechnical, environment protection and enhancement, traffic management and control, demolition and site clearance, earthwork, drainage, road and pavings and bridge works including piling.

The contract period shall be for 24 months and shall be completed by Oct 7, 2021 or any extension of time granted, Advancecon said.

Separately, AISB has also accepted another LoA from Sime Darby Property (Nilai) Sdn Bhd for the proposed construction and completion of earthwork, ESCP (Erosion and Sediment Control Plan), main drain, retaining wall and other ancillary works at part of plot 2 (SME Business Park), Nilai Impian 2, Mukim Setul, Daerah Seremban, Negeri Sembilan Darul Khusus, for the total sub-contract sum of RM11,818,046.30 (“the Contract”).

The overall work is expected to be completed in 12 months, by Oct 24, 2020.

Barring any unforeseen circumstances, both contracts are expected to contribute positively towards the group’s future earnings during the contract’s duration, Advancecon said.

The group intends to fund both contracts via internally-generated funds and/or external borrowings, the company said.

“Advancecon has now secured three new contracts in the span of a week, bringing the group’s total new wins to approximately RM200 million year-to-date. We are recognised for competitiveness and competency, as we step up efforts to maintain a positive trajectory,” Advancecon group chief executive officer Datuk Phum Ang Kia said.

Following these latest contract wins, Advancecon’s outstanding orderbook amount totals RM866.9 million, with earnings visibility for at least 30 months, Advancecon added.

Advancecon’s shares closed unchanged at 44.5 sen today, bringing its market capitalisation to RM178.77 million.