KUALA LUMPUR (Aug 18): T7 Global Bhd has bagged two contract extensions, one each from Hengyuan Refining Company Bhd and PTS Resources Sdn Bhd.
The value of both contracts will be as per order request and pricing stipulated in the contracts, the oil and gas (O&G) service provider said in a filing with Bursa Malaysia.
The first contract involves the supply by T7 Global’s sub-subsidiary, T7 Wenmax Sdn Bhd, of SBM hoses and accessories to Hengyuan for the extended period of July 1, 2020 to Dec 31, 2023.
The second contract, secured by T7 Global’s subsidiary T7 Gastec Sdn Bhd, is for the extension of supply of battery systems, including associate engineering services and accessories. “The contract is deemed to be effective on Sept 1, 2020 and extended from April 15, 2021 to June 30, 2021,” T7 Global said.
The group said the two contract extensions are expected to contribute positively to its earnings and net assets for the financial year ending Dec 31, 2020 (FY20).
“The risk factors affecting the contracts include execution risks such as availability of skilled manpower and regulatory conditions.
“Nevertheless, T7 Wenmax and T7 Gastec will undertake all the necessary efforts to mitigate the various risks factors identified. Both T7 Wenmax and T7 Gastec have established track records and expertise to undertake and execute similar projects,” the group added.
Last Friday, T7 Global announced that it had secured the approval of Bursa Securities to proceed with a 20% private placement exercise to raise up to RM42 million to partially fund its ongoing projects.
Shares in T7 Global stood unchanged at the midday break today, from yesterday’s closing price of 38.5 sen, valuing the group at RM198.09 million. Around 1.18 million shares were traded.
Year to date, the counter is down 15.38%.