Pestech bags first contract in Middle East worth RM30m

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KUALA LUMPUR (June 17): Pestech International Bhd has secured a US$7.16 million (RM29.90 million) contract to supply mobile substations to Iraq’s electricity ministry. 

Pestech said the contract — awarded to its wholly-owned unit Pestech Sdn Bhd (PSB) — marks a significant milestone for the group, as this is the first time it is venturing into the Middle East region.

This reflects Pestech’s strong engineering know-how and expertise in modular design and fully prefabricated solution, it added in a stock exchange filing.

Pestech said the contract involves the supply of four new 132/33 kilovolt (kV), 31.5 megavolt-ampere (MVA) mobile stations and two new 132/11 k, 25 MVA mobile substations. 

“The above project is funded by the Japan International Cooperation Agency towards the cost of Electricity Sector Reconstruction Project in Iraq.

“These mobile substations are able to accelerate the restoration of power supply, in the event of unexpected emergency shutdown and enable fast and flexible grid expansion,” Pestech added.

The group expects the contract to contribute positively towards its revenue and earnings in the financial year ending June 30, 2020 (FY20) and onwards, in accordance with the stages of supply to be recognised by the group.

Shares of Pestech fell one sen or 0.95% to close at RM1.04 today, giving it a market capitalisation of RM794.87 million. It saw some 225,600 shares traded. The share price has retreated 35.40% for the past one year.