KUALA LUMPUR (Oct 30): Utilities engineering services firm MN Holdings Bhd (KL:MNHLDG) has secured a RM63 million contract from Tenaga Nasional Bhd (KL:TENAGA) to develop a battery energy storage system (BESS).

The contract was awarded to MN Holdings’ wholly owned subsidiary MN Power Transmission Sdn Bhd, according to the company’s filing on Wednesday. BESS is an energy storage system that uses batteries to store and distribute electricity. 

Under the contract, MN Holdings will carry out the extension of a new 1 x 132-kilovolt (kV) overhead line BESS interconnection facilities bay for TNB, at its existing transmission main intake 132/11kV Santong (air insulated switchgear, or AIS).

The company will also construct a new transmission main intake 132/33kV Santong BESS (1x120MVA) (AIS), which will include the necessary primary, secondary, and power cables, along with all associated civil works.

As part of the contract requirements, MN Holdings will furnish a performance security of RM3.15 million, equivalent to 5% of the accepted contract amount within 56 days from Oct 30. 

The company expects to complete both projects within 18 months, starting from Oct 30, and anticipates the contract to contribute positively to its future earnings upon commencement of the contract.  

For its fourth quarter ended June 30, 2024, MN Holdings has reported a big jump of 132% in its net profit to RM4.96 million, as compared to RM2.14 million a year ago, thanks to higher construction activities in its underground utilities engineering segment. Revenue also surged 49.3% to RM73.4 million, from RM49.2 million a year before.

Shares in MN Holdings closed two sen or 2.21% higher at 92.5 sen on Wednesday, valuing the company at RM447.17 million. Year-to-date, the stock has appreciated over 68%.