Thursday 28 Mar 2024
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KUALA LUMPUR (June 15): Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) announced its wholly-owned subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), has secured four contracts worth RM324 million, which will last the group until June 2017.

The contracts secured involve offshore structural component fabrication works, hook up and commissioning and related topside construction work for facilities improvement project, as well as marine repair and conversion works, said MHB in a statement today.

“We are making good progress in replenishing our work order. MHB has now secured close to RM400 million worth of projects for the year-to-date. We are reasonably optimistic of building up our orderbook and are actively bidding for a number of sanctioned projects domestically and internationally,” said MHB managing director and chief executive officer Tuan Haji Abu Fitri Abdul Jalil.

The first contract will see MMHE fabricate substructures and bridge for the Baronia central processing platform (CPP) project. The CPP project is for the Integrated Baram Delta Gas Gathering II and Baronia enhanced oil recovery project located offshore East Malaysia.

The total estimated weights of these structural components under MHB’s scope is 10,736 tonnes and are due for load-out and sail-away to the ultimate client, Petronas Carigali Sdn Bhd in March 2017.

For the second contract, MHB has been confirmed as the contractor for Petronas Carigali to improve its facilities for offshore operations. The contract tenure is for two years, starting June 2015, with the option of a one-year extension.

The third contract is a repair life extension project and dry-docking for two liquefied natural gas carrier (LNG) vessels for MISC Bhd, namely ‘Puteri Intan’ and ‘Puteri Delima’. The project involves, among others, reinforcement work, retrofitting and boiler repair. The job is scheduled to be completed by early September this year.

Lastly, MHB has been tasked to convert a vessel into a floating, storage, and offloading facility for EA Technique (M) Bhd, a job that entails demolition, refurbishment, and installation works. The vessel is expected to arrive at the yard in July 2015 and is targeted for sail-away by end June 2016.

MHB (fundamental: 1.4; valuation: 1.1) closed eight sen lower today at RM1.16, with 1.82 million shares having changed hands.

(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.)

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