KUALA LUMPUR (Sept 10): KNM Group Bhd said its 70% indirectly owned joint venture (JV) company, CNI Engineering & Construction Malaysia Sdn Bhd (CNIEC) has been awarded a US$42 million (RM183 million) contract for works related to Petroliam Nasional Bhd’s Pengerang Integrated Complex (PIC).

In a filing with the exchange today, KNM (fundamental: 0.85; valuation: 1.70) said the contract was awarded by Toyo Thai Malaysia Sdn Bhd and said it will conduct erection work for the complex, which includes procurement of consumable materials and parts, construction works, inspection and testing, and documentation.

The contract will be for a 25-month duration, commencing September 2015.

“The erection work contract is expected to contribute positively to KNM Group's earnings for the financial years ending Dec 31, 2016, 2017 and 2018,” said the company.

KNM said the contract does not alter its risk profile, as the company is already operating in the oil and gas industry.

Although the KNM group with its vast experience may undertake efforts to mitigate the various risks, there is no assurance that any change in the above factors will not have a material adverse effect on the business and operations of KNM and/or CNIEC.

KNM fell 0.5 sen or 1.03% to 48 sen at midday, bringing its market capitalisation to RM940.4 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)