Handal bags RM4.5m Petronas EPCC contract extension

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KUALA LUMPUR (Dec 15): Handal Resources Bhd bagged a contract extension from from Petronas Lubricants International Sdn Bhd worth RM4.5 million.

The original RM17.5 million contract, which was undertaken in 2010, entailed the engineering, procurement, construction and commissioning (EPCC) of 22 new storage tanks for the Petronas Melaka Lube Blending Plant.

Today, Handal told Bursa Malaysia the EPCC contract extension was effective from December 9, 2014 for a period of nine months.

The extension, according to Handal, is expected to contribute positively to the group’s financial performance in financial year ending December 31, 2014 (FY14) and FY15.

Despite the contract extension, Handal shares fell amid broader market weakness.

At 3.19pm, Handal fell two sen or 6% to 32 sen, giving it a market capitalisation of RM51.2 million. For comparison, the KLCI declined 31.25 points or 1.8%.