Muhibbah expects Rapid tender outcome in 2H or next year

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KUALA LUMPUR: Muhibbah Engineering (M) Bhd expects the outcome of its tender for RM1 billion worth of jobs in Petroliam Nasional Bhd’s Refinery and Petrochemicals Integrated Development (Rapid) project in Johor to be known in the second half this year or sometime next year.

“It will take some time. Maybe [in the] second half [this year] or next year,” said Muhibbah group finance director Shirleen Lee on the sidelines of the Invest Malaysia Kuala Lumpur 2015 conference yesterday. She did not provide more details on the jobs.

Muhibbah’s (fundamental: 1.1; valuation: 0.8) tender book stood at about RM4 billion, while its order book was slightly over RM2 billion as at February this year.

On whether Muhibbah will tender for jobs for Petronas’ Pengerang Integrated Petroleum Complex, Lee said the firm may consider doing so on a selective basis. “We’ll see how it goes because we are pretty busy. We have to be selective,” she said.

Lee foresees that for the next seven to 10 years, Malaysia will experience enormous growth in infrastructure jobs in the oil and gas, marine and onshore segments.

 

This article first appeared in The Edge Financial Daily, on April 24, 2015.