KUALA LUMPUR (April 17): MN Holdings Bhd said its wholly-owned subsidiary Mutu Nusantara Sdn Bhd has secured a contract from Rentak Segar Sdn Bhd to undertake the engineering, procurement, construction and commissioning (EPCC) of a natural gas distribution system in Tanjung Malim, Perak worth RM20.2 million.

Mutu Nusantara was appointed as the sub-contractor of this project and will be responsible for the engineering design, procurement of materials, spare parts and supplies, provision of construction equipment, as well as testing and commissioning.

In a Bursa filing on Monday (April 17), the group said the project duration is between April 2023 and February 2025.

The EPCC contract will also increase its current outstanding order book to RM352.9 million, and it is expected to contribute positively to the company's earnings for the financial years ending June 30, 2023 (FY2023), FY2024 and FY2025.

For the second quarter ended Dec 31, 2022 (2QFY2022), its net profit improved slightly to RM2.58 million from RM2.51 million in the same quarter a year earlier while quarterly revenue rose 57.27% to RM41 million from RM26.07 million in 2QFY2022 thanks to its substation engineering segment.

Net profit for the first half of 2023 (6MFY2023), however, fell by 20.92% to RM3.78 million in 2023 from RM4.78 million a year earlier (6MFY2022) due to increasing administrative expenses and decrease in other incomes. Its revenue was 36.75% higher to RM68.06 million versus RM49.77 million in 2022.

“Our portfolio continues to expand with this award, which demonstrates continued progress in our business strategy to grow our customer segments,” said managing director Loy Siong Hay.

“We will continue to work hard to maintain our growth momentum and grow our order book. This contract further strengthened MN Holdings’ foothold in gas distribution projects in Malaysia.”

MN Holdings’ share price closed unchanged to 36 sen on Monday (April 17), giving a market capitalisation of RM147.15 million.