KNM subsidiary gets US$5.35m contract from Samsung consortium

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KUALA LUMPUR (Sept 20): KNM Group Bhd's indirect wholly-owned subsidiary FBM-KNM FZCO has secured a US$5.35 million (about RM22.363 million) contract to supply shell and tube heat exchangers to an oil refinery run by Thai Oil Public Co Ltd in Thailand's Sri Racha district within the province of Chonburi.

In a statement to Bursa Malaysia today, KNM Group said FBM-KNM FZCO had today accepted the purchase order (PO) dated yesterday (Sept 19) from PSS Netherlands B.V. Sharjah Branch for clean fuel project at oil refinery.

PSS Netherlands B.V. Sharjah Branch is a consortium comprising Saipem S.p.A., Samsung Engineering Co Ltd and Petrofac Ltd, according to KNM Group.

"The supply and delivery duration of the transaction is for a period not exceeding 10 months commencing from the date of the PO. The transaction is expected to contribute positively to KNM Group's earnings for the financial year ending Dec 31, 2019 and Dec 31, 2020.

"This transaction is additional and if combined with the earlier disclosed contract award received by KNM Process Systems Sdn Bhd, another wholly-owned subsidiary company of KNM, as was announced on Sept 17, 2019 also from PSS Netherlands B.V. Sharjah Branch for the clean fuel project — Thailand, brings the combined contract awards received by KNM to a current total amount of RM75.629 million," KNM Group said.

At Bursa Malaysia today, KNM Group's share price settled unchanged at 41.5 sen at 12:30pm. The stock saw some 26 million shares traded.