KUALA LUMPUR (June 21): Mechanical and electrical engineering services group Bintai Kinden Corp Bhd said its unit has terminated eight contracts with Tenaga Nasional Bhd (TNB) due to its inability to continue to perform its contractual obligations.

The group said the financial impact of the terminations by Kejuruteraan Bintai Kindenko Sdn Bhd (KBK) has yet to be determined, as it is subject to TNB inspections on progress and assessment of the final account.

“Having considered all aspects, the board is of the opinion that the termination is in the best interest of KBK,” the group said in a filing with Bursa Malaysia on Wednesday (June 21).

Based on prior bourse filings, the contracts related to various utilities and substation jobs that KBK was awarded between 2018 and 2023.

Of the identifiable contracts, the six awarded between 2021 and 2023 were worth RM128.88 million.

Meanwhile, the value of the two other terminated contracts awarded back in 2018 could not be discerned as prior Bintai Kinden’s filings did not disclose the contract numbers. However, KBK was awarded three contracts by TNB back in 2018, worth a cumulative RM47.98 million.

For the financial year ended March 31, 2023, Bintai Kinden fell into the red with a net loss of RM51.99 million, versus a net profit of RM4.27 million a year earlier, despite revenue rising 20.36% to RM115.86 million from RM96.26 million.

The group attributed the loss to extraordinary costs in its fourth quarter, including the further impairment of its concession receivable on a project related to financing from MBSB Bank Bhd, and a default payment.

Shares in Bintai Kinden ended unchanged at eight sen, giving the group a market capitalisation of RM71.45 million.