Econpile bags RM209m contract, exceeds FY18’s total new wins

This article first appeared in The Edge Financial Daily, on February 13, 2019.
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KUALA LUMPUR: Piling and foundation specialist Econpile Holdings Bhd has bagged a RM209.3 million contract for basement and substructure works for phase two of Pavilion Damansara Heights’ mixed development in Jalan Damanlela here.

This new contract brings Econpile’s total new wins to RM506.7 million in the current financial year to date, higher than RM473.4 million in the financial year ended June 30, 2018 (FY18). Its order book currently stands at RM1.1 billion, providing earnings visibility until FY21.

In a statement yesterday, Econpile said its wholly-owned subsidiary Econpile (M) Sdn Bhd had received a letter of award from Domain Resources Sdn Bhd for the proposed works.

Econpile added that the contract duration is 20 months, and is expected to contribute positively to the group from FY19 to FY21.

The latest award is the group’s third contract win for phase two of Pavilion Damansara Heights, after securing an RM18 million contract to build contiguous bored pile walls and a RM122 million contract for bored piling works.

“With this latest contract, we have exceeded our last financial year’s total new wins within seven months of FY19. This indicates our competitiveness despite the challenging construction sector,” said Econpile executive director and group chief executive officer Raymond Pang.

“Our current order book contains a healthy mix of infrastructure projects, as well as private sector-led high-rise property developments in the Klang Valley and Johor.”

On the group’s future prospects, Pang said “sustaining a healthy flow of contract wins is one of our key strategies to achieve an optimal machinery utilisation and retain talent, particularly in a competitive environment”.