This article first appeared in The Edge Financial Daily on October 1, 2019

KUALA LUMPUR: Handal Energy Bhd has bagged a contract to provide offshore crane operations and maintenance services. Its unit, Handal Cranes Sdn Bhd, secured the contract from Sarawak Shell Bhd (SSB) and Sabah Shell Petroleum Co Ltd (SSPC).

In a stock exchange filing, Handal said the two-year contract starting from today — with an optional one-year extension — entails the provision of operations, maintenance, repair and manpower services for 29 offshore cranes under SSB and SSPC located off the waters of Sarawak and Sabah.

The contract does not have a specified value as it is on a “call-out” basis whereby work orders will be awarded at the discretion of SSB/SSPC based on its activity as well as maintenance and repair schedules throughout the contract duration, it added.

Handal expects the new job to contribute positively to its earnings for the financial year ending June 30, 2020, and subsequently until the expiry of the contract.

Handal shares closed one sen higher at 37.5 sen yesterday, valuing the company at RM81.94 million.