Muhibbah bags two EPCIC contracts from Petronas worth RM205m

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KUALA LUMPUR (Dec 21): Muhibbah Engineering (M) Bhd has bagged two Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) contracts worth a collective RM205 million, according to the group's stock exchange filing today.

The first is a contract from Regas Terminal (Sg Udang) Sdn Bhd, a wholly-owned subsidiary of Petronas Gas Bhd (PetGas), to provide EPCIC of seawater overboard upgrading, firewater network improvement and new pressure control (PCV) installation project in Melaka. PetGas is the gas processing and transmission arm of Petroliam Nasional Bhd (Petronas).

The second is to provide EPCIC of Yetagun Acid Gas Removal Unit project in Myanmar, from PC Myanmar (Hong Kong) Ltd, a wholly-owned unit of Petronas.

The first project is expected to be completed by the first quarter of 2020, while the second project is expected to be completed by the second quarter of 2020. 

"The contracts are expected to contribute positively to the earnings and net assets of the Muhibbah Group for the current and future financial years," Muhibbah said.

The group's shares closed 2 sen or 0.74% higher at RM2.72 today, giving it a market capitalisation of RM1.31 billion.