Favelle Favco bags eight contracts worth RM68.8m

Favelle Favco bags eight contracts worth RM68.8m
-A +A

KUALA LUMPUR (Nov 25): Favelle Favco Bhd, which saw its share price hit its all-time high of RM3.02 last week, has bagged eight supply contracts worth a total of RM68.8 million.

In a filing with the local stock exchange, the group said six out of the eight contracts are for the supply of offshore cranes, while the remainder two are for the provision of compressor system and replacement of flare pips.

The contracts were awarded to its wholly-owned Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes Pte Ltd, Favelle Favco Cranes Pty Ltd and Exact Automation Sdn Bhd, via receipts of letters of intent from Oct 17 until today.

All of the contracts are to be delivered sometime next year, save one supply of offshore crane which will be staggered from the third quarter of 2020 onwards, till the first quarter of 2021.

The customers are Malaysia Marine and Heavy Engineering Sdn Bhd, PTTEP Sarawak Oil Ltd, Emdad LLC, PTT Exploration and Production Public Company Ltd, PTSC Mechanical & Construction Ltd Company, Crema Constructions Pty Ltd, Sarawak Shell Bhd and Kebabangan Petroleum Operating Company Sdn Bhd.

The contracts are expected to contribute positively to its earnings and net assets for the financial year ending Dec 31, 2019 (FY19) and beyond, Favelle Favco said.

Favelle Favco shares rose one sen or 0.34% to close at RM2.92 today, valuing the company at RM651.53 million. Over the past year, the counter has grown some 36%, from RM2.14.