Favelle Favco bags supply contracts worth RM77m

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KUALA LUMPUR (Oct 16): Favelle Favco Bhd has bagged nine supply contracts worth a total of RM77.2 million.

The group announced in a stock exchange filing today that the contracts are for the supply of tower cranes, offshore cranes, programmatic logic controller system, as well as hardware upgrading.

The contracts were awarded to its wholly-owned Favelle Favco Cranes Pty Ltd, Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes Pte Ltd and Exact Automation Sdn Bhd.

Favelle Favco is to deliver the contracts to its customers either by this year or next. The customers are Sarawak Shell Bhd, Marr Contracting Pty Ltd, G A Caelli Holdings Trust, MEB Construction Sdn Bhd, Keppel Shipyard Ltd, Armada Madura EPC Ltd, Kebabangan Petroleum Operating Company Sdn Bhd and Nov Process & Flow Technologies Malaysia 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, the group said.

Favelle Favco shares closed three sen lower today at RM2.64 apiece, for a market capitalisation of RM588.97 million. The stock, which traded between RM2.20 and RM2.88 in the past 52 weeks, has climbed over 18% from a year ago.