KUALA LUMPUR (Nov 10): PMW International Bhd (KL:PMW) has secured an additional RM64.37 million in contract value as well as a one-year extension for its spun concrete poles supply job for Tenaga Nasional Bhd (KL:TENAGA).
Its unit, PMW Concrete Industries Sdn Bhd, inked a second supplemental agreement for additional spun concrete poles and extend the contract until Dec 8, 2027, according to the concrete products maker’s bourse filing on Tuesday.
With the RM19.31 million under the optional value contract secured in August this year, and the contract’s initial value of RM64.37 million, its aggregate value stands at RM148.05 million.
Under the initial contract, total spun concrete poles delivered stand at RM60.19 million as of Tuesday.
“With the remaining contract balance of approximately RM87.86 million, we are positive that this second supplemental agreement will add constructively to the group’s current orderbook and provide sustained revenue visibility, particularly for the financial year ending Dec 31, 2027 (FY2027),” PMW executive director and chief executive officer Lee Hon Hwa said.
“Alongside higher production volume, additional capacity in the upcoming year with the completion of the group’s earmarked production facilities, PMW Group is poised to achieve better economies of scale to match the order quantity,” he added.
PMW said the RM19.31 million optional value contract, together with the latest RM64.37 million under the second supplemental agreement, are largely seen as a replenishment of orders catering to Tenaga’s infrastructure requirements for its distribution network.
The original contract was secured on Dec 9, 2024, for a one-year period, with an option to extend for another year — initially up to Dec 9, 2026.
The RM19.31 million in additional contract value in August stemmed from an option for Tenaga Nasional to increase the contract’s value by up to 30% at the same prices and on the same terms.
Shares of PMW ended one sen lower or 3.77% at 25.5 sen, valuing the company at RM223.26 million.