KUALA LUMPUR: Mudajaya Group Bhd has secured a RM489 million contract to build a workers village and temporary construction facilities for the utilities, interconnecting and offsites (UIO) facilities for Petroliam Nasional Bhd’s (Petronas) Rapid project in Pengerang, Johor.

The 15-month long contract could be an income booster for Mudajaya Group, which has been in the red for three consecutive quarters. In a filing with Bursa Malaysia, Mudajaya Group said its wholly-owned subsidiary Mudajaya Corp Bhd had been awarded the contract by PRPC Utilities and Facilities Sdn Bhd.

Mudajaya Corp will undertake the engineering, procurement, construction and commissioning of a workers village and temporary construction facilities for the UIO facilities for the Rapid project.

PRPC Utilities and Facilities is a subsidiary of Petronas.

Mudajaya Group (fundamental: 0.35; valuation: 0.9) posted a net loss of RM31.9 million for the first half of the financial year ended June 30, compared to a net profit of RM28.4 million a year ago. Revenue contracted sharply to RM270.8 million from RM645.4 million in the previous corresponding period.

Its share price staged a rebound after it hit a low of 85 sen last month. It gained three sen to RM1.07, with a market capitalisation of RM559.9 million.

This article first appeared in digitaledge Daily, on September 15, 2015.