KUALA LUMPUR (Feb 19): Southern Cable Group Bhd (KL:SCGBHD) has secured a RM403.55 million contract from Tenaga Nasional Bhd (TNB) (KL:TENAGA) to supply underground cable and conductors to the utility giant's distribution network division.

The contract, awarded to the cable and wire maker’s wholly owned unit Southern Cable Sdn Bhd, took effect on Feb 12, according to Southern Cable’s bourse filing on Wednesday.

The contract period spans one year, with an option to extend for an additional year at the same contract price — an additional RM403.55 million.

“TNB has the right to request an optional value of up to 30% from the contract price based on the terms as specified under the contract before its expiration period,” the company noted.

In other words, TNB has the option to request additional orders of cable and conductors up to 30% of the contract’s value — RM121.07 million.

Towards meeting rising demand for cable and wires, Southern Cable is focused on expanding its production capacity and enhancing its product range, according to its managing director Tung Eng Hai.

“Looking ahead, we are confident in delivering strong performance for the financial year ending Dec 31, 2025 (FY2025), supported by robust orders and Malaysia’s development activities,” he said.

Shares in Southern Cable closed two sen or 1.57% higher at RM1.29, valuing the company at RM1.18 billion.