Bintai Kinden clarifies that TNB terminated eight contracts with its unit due to issues with banking facilities

Tuesday 21 May 2024

KUALA LUMPUR (June 22): Bintai Kinden Corp Bhd has clarified that eight contracts with Tenaga Nasional Bhd (TNB) were terminated by the national utility group due to its unit Kejuruteraan Bintai Kindenko Sdn Bhd’s (KBK) inability to continue to perform its contractual obligations.

The mechanical and electrical engineering services group said KBK was unable to continue performing its contractual obligations due to its banking facilities being suspended and/or terminated by the financial institutions.

On June 22, Bintai Kinden had announced to Bursa Malaysia that KBK had terminated the eight contracts with TNB as it was unable to continue to perform its contractual obligations. No value of the contracts were provided by Bintai Kinden in the filing.

Based on prior bourse filings, the contracts were 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.

On Thursday, shares in Bintai Kinden ended unchanged at eight sen per piece, giving the group a market capitalisation of RM71.45 million.

The group’s managing director Datuk Tay Chor Han has raised his direct stake in Bintai Kinden to 7.43% from 7.05%, after acquiring 3.41 million shares at eight sen per piece via open market on Thursday.

Chairman Datuk Ng Choon Koon also increased his direct stake in the group to 4.71% from 4.36%, after purchasing 3.18 million shares the past two days, similarly at eight sen per piece via open market.