KUALA LUMPUR: Progressive Impact Corp Bhd has bagged a 109.22 billion rupiah (RM31.35 million) contract from Chevron Corp to undertake environmental sampling and laboratory analysis for its Sumatera operation in Indonesia.
Progressive Impact said the award is a continuity of the existing business that its subsidiary PT ALS Indonesia has with Chevron. Additionally, the contract serves as business expansion in a foreign market, which is Indonesia, it added.
In a filing with Bursa Malaysia yesterday, Progressive Impact said PT ALS on Wednesday accepted a letter of award from Chevron’s wholly-owned subsidiary PT Chevron Pacific Indonesia for the job.
“The contract involves the scope of environmental monitoring, sampling and laboratory services,” it added.
The contract will commence from April 24, 2019 to Aug 8, 2021. PT Chevron may elect to extend the contract period for another 36 months until April 24, 2022.
Progressive Impact said the execution of the contract depends on work orders to be issued by PT Chevron from time to time.
“It is the prerogative of PT Chevron to decide on the timing of the requirement of services. Hence, any delay in issuing work orders will lead to delay in revenue recognition,” it noted.
The group added that the award of the contract will have a positive impact on its earnings for the financial year ending Dec 31, 2019.
ALS Technichem (Malaysia) Sdn Bhd (ALS Malaysia) holds an 80% stake in PT ALS, while Australian Laboratory Services Pty Ltd owns the remaining 20%. ALS Malaysia in turn is 59% owned by Progressive Impact, 40% by Australian Laboratory Services and 1% by Zaid Abdullah, the founder, executive deputy chairman and major shareholder of Progressive Impact with a 54.57% stake as at Jan 26.
Shares in Progressive Impact closed unchanged at 13 sen yesterday, with 364,000 shares done, bringing it a market capitalisation of RM85.31 million.