Wah Seong bags RM189m Pengerang subcontract

Wah Seong bags RM189m Pengerang subcontract
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KUALA LUMPUR: Wah Seong Corp Bhd has bagged a RM188.96 million subcontract from Penta-Ocean Construction Co Ltd for the supply and delivery of coated steel pipe piles for the Pengerang Deepwater Petroleum Terminal Project in Johor.

In a filing with Bursa Malaysia yesterday, Wah Seong said its subsidiaries namely, PPI Industries Sdn Bhd and Petro-Pipe (Sabah) Sdn Bhd were awarded the subcontract, involving the manufacture and delivery of coated steel pipe piles.

"The risks are the normal operational risks associated with the manufacturing, coating and delivery of steel pipes, which is one of the core businesses of Wah Seong group. The subcontract is expected to be completed by the third quarter of 2016," it added.

Wah Seong said the subcontract is expected to contribute positively to the group's earnings over the subcontract period.

The subcontract is project-specific and is not renewable, it added.

Wah Seong (fundamental: 0.95; valuation: 3) shares closed unchanged at RM1.22 yesterday with 113,700 shares done, bringing a market capitalisation of RM945.22 million.

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This article first appeared in digitaledge Daily, on August 19, 2015.