PETALING JAYA: Muhibbah Engineering (M) Bhd has been awarded a contract by PETRONAS Carigali Sdn Bhd (PCSB) for the provision of engineering, procurement, construction and commissioning, as well as installation of lightweight structure for the Gansar project worth RM322mil.
The award of the Gansar project, about 190km offshore from Terengganu, was executed via a consortium of which Muhibbah is the lead partner.
The work scope included undertaking Duyong Brownfield modification and host tie-in for project.
In a filing with Bursa Malaysia yesterday, the construction engineering firm said work on the contract is to begin immediately and would take an estimated 22 months to complete.
“The contract is expected o contribute positively to the earnings and net assets of the group for the current and future financial years. The contract does not have any impact on the share capital or shareholding structure of Muhibbah,” the company said.
The project’s work is within the normal ordinary business scope of the group, and hence it is not expecting additional risks other than those through its existing businesses, such as changes in economic and regulatory environment, operational risks, shortage of manpower, on top of fluctuation of material prices and foreign currencies.
The securing of the award would be good news for Muhibbah, which slipped into the red for the quarter ended Sept 30, 2022 when it posted a net loss of RM1.4mil mainly due to high operating expenses, with some sector analysts lowering their estimates for the group.
MIDF Research, in its research note two weeks ago, said 2023 would be a good time for Muhibbah to capture the potential increase in job flows when the infrastructure projects start to roll in.
