Handal Energy bags another five-year contract from ExxonMobil

Handal Energy bags another five-year contract from ExxonMobil
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KUALA LUMPUR (Sept 27): Handal Energy Bhd has bagged a five-year contract from ExxonMobil Exploration and Production Malaysia Inc to provide crane overhaul, repair, and refurbishment services. 

This is the second contract it has bagged from ExxonMobil in three months. On June 24, it had secured a five-year contract to provide crane operation and maintenance services.

The latest contract, which runs from Oct 1, 2021 until Sept 30, 2026, does not carry a specified value as it runs on a call-out basis where fees are determined at the point of time the service is provided during the tenure of the contract, the integrated oil and gas services provider said in a statement on Monday. 

Its group managing director Sunildeep Dhaliwal said the latest contract award by ExxonMobil is another testament of their confidence in Handal's services since the past three decades.

“We have been providing our services to ExxonMobil (or ESSO then) since 1988 and this is their second maintenance contract awarded to our company this year. We are pleased to have secured this long-term contract and look forward to further improving our performance level including providing value-adding services to them,” he added. 

Noting the group has returned to profitability in the financial year ended June 30, 2021 (FY21), Sunildeep said this overhaul maintenance service contract plays an important part in contributing towards the group’s earnings. 

“We expect this contract to contribute positively to our earnings for the financial year 2022 until 2026,” he added. 

Handal shares closed unchanged at 22.5 sen apiece on Monday, giving it a market capitalisation of RM52 million.

Kang Siew Li