MAHB bags extension contract from Hamad International Airport

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KUALA LUMPUR (Aug 25): Malaysia Airports Holdings Bhd (MAHB)'s 49%-owned Qatar unit received a QAR163.9 (RM180.8 million) extension contract yesterday from Hamad International Airport (HIA) to provide facility management services for airport operational facilities and ancillary buildings including its change orders for the Doha-based airport.

MAHB said Malaysia Airports Consultancy Services Middle East LLC (MACSME), a joint venture company between Watad Group Enterprises LLC and Malaysia Airports Consultancy Services Sdn Bhd (MACS) in a 51:49 ratio would execute the three-year contract from June 18, 2016 to June 17, 2019.

MACS is a wholly-owned subsidiary of MAHB.

"The scope of work involves comprehensive facilities maintenance services, interim security services and custodial and janitorial services for the various airport operational facilities and ancillary buildings at the HIA," MAHB told a bourse filing today.

The extension contract is further to a three-year RM192.15 million contract MACSME won in December 2014 from the New Doha International Airport Steering Committee to repair and maintain services at the airport special systems in HIA.

Today, MAHB said it is committed to its fundamental objective of pursuing long-term sustainable business growth.

Hence, the project awarded to MACSME signifies MAHB's determination to continue pursuing opportunities in airport development, operation, management, and project consultancy overseas.

"The project is expected to enhance MAHB's revenue stream from the consultancy business and to diversify its future earnings," it said.

MAHB said the project was not expected to have any material financial implication and effect on its share capital, substantial shareholders' shareholdings and gearing for the financial year ending Dec 31, 2016.

"However, it is expected to contribute positively to the group's future earnings and net assets commencing financial year ending Dec 31, 2016," it said.

MAHB closed down 18 sen or 2.84% at RM6.15, valuing it at RM10.1 billion.