KUALA LUMPUR (Nov 7): KKB Engineering Bhd has secured contracts worth a combined RM93 million from several companies with key projects in the industrial and infrastructure sectors.

In a Bursa Malaysia filing on Thursday, KKB noted that the latest contracts include a three-year price agreement from Petroleum Sarawak Bhd (Petros), a sub-contract from Bina Puri Builder Sdn Bhd — a wholly owned unit of Bina Puri Holdings Bhd (KL:BPURI), and a purchase order from Greenchain Capital Sdn Bhd.

The Petros term contract — which is for the re-conditioning, re-qualification and re-painting of liquefied petroleum gas (LPG) cylinders — will extend until the third quarter of 2027.

Meanwhile, the Bina Puri Builder sub-contract for the proposed Serian regional water supply phase II (Stage 1) is slated for completion within 24 months. 

The Greenchain Capital purchase order for the supply of MSCL pipes and specials is expected to be delivered within 12 months.

These projects are expected to have a positive impact on KKB’s earnings and net assets, although they are not expected to affect the firm’s share capital.

KKB noted that risks associated with the contracts include availability of skilled manpower, material costs, foreign exchange fluctuations, and other potential challenges like weather conditions and changes in the political, economic and regulatory environment.

KKB’s board of directors expressed confidence that these contracts are in the best interest of the company, and will contribute to its continued growth.

As of the announcement, KKB shares were three sen or 1.94% lower at RM1.52 at the time of writing on Thursday, with a market capitalisation of RM438.9 million. Year-to-date, the stock has gained six sen or 4.11%.