KUALA LUMPUR (May 5): Lebtech Bhd’s unit has won a RM55.3 million job for reclamation, shore protection and revetment sub-contract in Pekan, Pahang from Global Marine Contractor Sdn Bhd.

In a bourse filing on Friday (May 5), Lebtech clarified that the letter of award to its wholly-owned subsidiary Lebtech Construction Sdn Bhd was issued by Global Marine, which in turn was awarded the sub-contract by Vista Infinity Development Sdn Bhd. "The project was awarded to Vista Infinity by the Ministry of Natural Resources, Environment and Climate Change," Lebtech added.

The job will span 33 months starting from May 3, involving sand supply, site management and mobilising all dredging plant and equipment necessary for the project, said Lebtech in an earlier stock exchange filing on April 25.

Lebtech said this contract is expected to contribute positively to its earnings from the financial year ending Dec 31, 2023 (FY2023) onwards.

For FY2022, the group reported a net profit of RM74,000, down 77% from RM326,000 in FY2021, while revenue fell 23.4% to RM20.17 million from RM26.33 million, as the group’s construction project was in the final stage of completion.

Commenting on FY2023 prospects, Lebtech said it remains cautious as its board of directors foresees operational results to be “equally challenging”.

“The group expects the construction industry to record slower growth in year 2023 amid revision of mega projects and in line with the slowdown in the global construction sector and the Covid-19 pandemic,” it said.

“The revenue generation mainly comes from the construction contracts of property development projects with significant effort be given to secure new construction jobs to improve the order book,” it added.

At 3.49pm on Friday, shares of Lebtech were traded down 3 sen or 4% at 72 sen, giving it a market capitalisation of RM98.27 million.