KUALA LUMPUR (March 20): KKB Engineering Bhd said the group and its associate have both secured contracts from Petronas Dagangan Bhd (PetDag), while the group also received a purchase order from Laras Jaya Engineering Sdn Bhd (LJE).

The combined value of the contracts and purchase order is RM30.8 million, the group said in a filing with Bursa Malaysia.

KKB Engineering said the group’s contract from PetDag is for the fabrication and reconditioning of LPG cylinders and the supply of LPG compact valves.

Its associate company, Edisi Optima Sdn Bhd, meanwhile received the letter of award from PetDag for the shot-blast repainting of LPG cylinders.

“Both Petronas contracts are effective from March 15, and shall be valid for a period of three years unless terminated earlier, with an option to extend the contract period for a further period up to two years,” said KKB Engineering.  

As for the purchase order from LJE, it is for the supply of mild steel concrete lined pipes for Sarawak Water Supply Grid Programme – Stressed Areas.

The completion date for LJE is scheduled within nine months.

KKB Engineering said the contracts and purchase order are expected to contribute positively towards its earnings and net assets for the duration of the supply period.

Shares of KKB Engineering fell three sen or 2.38% to close at RM1.23, giving it a market capitalisation of RM317.08 million.

Meanwhile, PetDag shares rose 14 sen or 0.56% to settle at RM24.98, valuing the group of RM24.82 billion.