SCIB bags three contracts worth a collective RM707m

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KUALA LUMPUR (Aug 18): Sarawak Consolidated Industries Bhd (SCIB) has bagged three engineering, procurement, construction and commissioning (EPCC) contracts worth a combined RM707.24 million in Abu Dhabi, Malaysia and Indonesia.

"The three projects that the company has been awarded will strengthen our order book, as well as our financial position. The latest projects also show that we are diversifying geographically as two of the projects are located outside of Malaysia," said SCIB chief executive officer (CEO) and managing director Rosland Othman in a statement.

Two of the three jobs come from subsidiaries of Serba Dinamik Holdings Bhd and are considered recurrent related-party transactions (RRPTs) as Serba Dinamik's group managing director cum CEO and major shareholder Datuk Dr Mohd Abdul Karim Abdullah is also SCIB's chairman and major shareholder.

The first one, which will commence in October 2020 to September 2024, is worth US$145 million or RM607.77 million. The job involves enabling works, infrastructure, as well as landscaping the hybrid mall and management/sales office for Phase 1 in Abu Dhabi. The second contract, which involves piling works for a strata project in Pengerang, Johor, that will also start in October and be completed by May next year, is worth RM43.88 million.

Meanwhile, SCIB was also awarded an earthworks job for a toll road construction project in Prabumulih, Muara Enim in Indonesia from PT Cipta Multi Sarana. The seven-month contract that will start in October is worth US$13.26 million or RM55.59 million.

At 3.44pm, SCIB’s shares were up nine sen or 3.3% at RM2.82, valuing the group at RM355.63 million. Over the past year, the stock has jumped some 137% from RM1.19.