KUALA LUMPUR (Oct 1): KKB Engineering Bhd (KL:KKB) said on Thursday it has secured a government contract for water infrastructure upgrade in Sarawak worth RM517 million.
This marks the group’s second major win within a week.
In a bourse filing, the engineering group said the three-year contract was awarded through the Regional Corridor Development Authority (Recoda), the state agency managing the development plan for the Sarawak Corridor of Renewable Energy (Score).
It involves the second phase of the water infrastructure upgrade in Samalaju, Sarawak, said KKB.
The project is aimed at increasing the area’s water treatment capacity, from 80 million litres to 200 million litres per day, to support the booming industrial demands of energy-intensive industries. Samalaju is an industrial hub located in Bintulu Division, spanning 8,000 hectares.
KKB expects the contract to contribute positively towards its earnings and net assets over its duration.
The Sarawak-based group was founded in 1962 by Datuk Seri Kho Kak Beng as a welding workshop. In 1994, the group was listed on the Second Board of Bursa Malaysia.
Last Monday, KKB secured a RM462 million contract from Sarawak Shell Bhd and two other companies for the provision of engineering, procurement and construction of fixed offshore structure works for the SK408 Teja & Populus (TePu) and Temu & Inai (TuNai) field development projects. The group also received supply orders from Hock Seng Lee Bhd and Bumia Sdn Bhd.
As at end-June, the group had cash and short-term deposits of RM41.58 million with no loans and borrowings.
KKB shares ended three sen or 2.44% lower at RM1.20 on Thursday, giving the group a market capitalisation of RM346.5 million.