KKB Engineering clinches three contracts worth RM29m

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KUALA LUMPUR (June 20): KKB Engineering Bhd has scored three contracts worth a total of RM29 million.

In a bourse filing, the group said its subsidiary OceanMight Sdn Bhd received a subcontract letter of award (LoA) from MISC Offshore Floating Terminals Dua (L) Ltd for the provision of engineering, procurement, construction and commissioning of a new electric submersible pump (ESP) module in relation to upgrade and modification works on MAMPU-1 and AJK Platform for Vestigo Petroleum Sdn Bhd.

The group was also issued a supply order by Mirecont Sdn Bhd to supply mild-steel cement lining (MSCL) pipes for the Sarawak Water Supply Grid Programme.

In addition, the group had also received a purchase order from SKE Alliance Sdn Bhd (SKE) to supply MSCL pipes to the Sarawak Water Supply Grid Programme.

KKB's contract with MISC Offshore Floating Terminals Dua is to be completed by December 2019, while its contracts with Mirecont and SKE shall be progressively delivered or collected by March 2020.

The contracts are expected to positively contribute to the group's earnings and net assets throughout the contract periods.

"The board is of the opinion that the abovementioned contract/orders is in the best interest of KKB and its group," said KKB.

At the noon market break today, KKB shares were 0.77% or a sen lower at RM1.29 — with a volume of 42,600 shares — giving the group a market capitalisation of RM335.13 million.