KUALA LUMPUR (Dec 24): MTD ACPI Engineering Bhd has been granted the award in arbitration against Air Kelantan Sdn Bhd for a total sum of RM5.43 million, which is more than double the engineering firm’s net profit for the first half of its financial year ending Mar 31, 2015 (1HFY15).

In a filing with Bursa Malaysia, MTD ACPI said the arbitrator granted the final award in favour of the claimants, namely ACP Industries Bhd (the former name of MTD ACPI) and Mendza Builders Sdn Bhd, the entitlement of RM4.47 million.

Also, the claimants were awarded for the pre-award interest of RM896,841.95, a post-award interest and costs of the final award amounting to RM72,000, in which the respondent Air Kelantan will reimburse the claimants accordingly if the latter has paid the costs.

The arbitration case of ACP Industries and Mendza Builders versus Air Kelantan was to settle the dispute of the final account of a contract for the design, build and finance of Chica Water Supply Scheme in Kota Bharu.

ACP Industries said in a June 2011 filing it contended the final account assigned had no value to some of the variation works. The firm also claimed there were miscalculations in the profit portion, liquidated ascertained damages, and deduction in the cost of Scada System.

The final account also, said ACP Industries, had not taken into consideration the prolongation costs, and did not address the issue of interest and financing charges.

The arbitration claims could be a windfall for ACP Industries, which made a net profit of RM2.52 million, or 1.09 sen per share in 1HFY15. This compared with the previous corresponding quarter’s income of RM4.69 million or 2.03 sen per share. Revenue however was 1.32% higher at RM169.36 million.

ACP Industries share price closed unchanged at 29 sen today with 32,000 shares changing hands. Its market capitalisation was RM67.17 million.