KUALA LUMPUR (May 3): Handal Energy Bhd's 51%-owned subsidiary Borneo Seaoffshore Engineering Sdn Bhd has secured a new contract from Malaysia LNG Sdn Bhd (MLNG) for the provision of pipeline isolations services.

Handal said in a bourse filing that the contract is effective for about 14 months from Jan 27, 2021 until April 2, 2022, and comes with a one-year extension option.

The contract does not have any specified value, as it is on a “call-out” basis, Handal said, whereby work order will be issued at the discretion of MLNG based on their activities schedule and rates throughout the duration of the contract.

The contract is expected to contribute positively to the earnings of Handal for the financial year ending June 30, 2021 and June 30, 2022 until the expiry of the contract.

Handal shares closed 0.5 sen or 2.17% lower at 22.5 sen today, valuing the group at RM52.89 million.