Muhibbah eyes RM5b contracts

SHAH ALAM: Muhibbah Engineering (M) Bhd is tendering for more than 50 projects worth RM3 billion to RM5 billion, made up mostly of infrastructure, oil and gas and port projects, to bolster its current order book of RM2 billion.
Speaking to reporters after the group's AGM yesterday, its managing director Mac Ngan Boon said the group was tendering for the Refinery and Petrochemical Integrated Development (Rapid) contracts and it was also planning to bid for the Mass Rapid Transit 2 (MRT2) line contracts.
"At the moment, we are bidding anywhere from RM100 million single packages up to RM1 billion single package values," he said, noting the RM2 billion orderbook will keep it busy for two years.
"On Rapid there are quite few packages that we are bidding, as well as other Petronas contracts in East Malaysia and Sarawak," he added, without elaborating further.
He said it would take some time for the contract to be awarded, noting the awarding process for the MRT2 project is expected to be announced in the first quarter next year.
Recently the group and its unit Muhibbah Airline Support Industries Sdn Bhd secured three contracts totalling RM60.3 million from Westports Malaysia Sdn Bhd, BASF Petronas Chemical Sdn Bhd and Mass Rapid Transit Corp Sdn Bhd (MRT Corp).
The contract from Westports is for a 14-lane exit gate at Container Terminal 7 at Port Klang, which is expected to be delivered by the first quarter of 2016.
Meanwhile, it will undertake civil and structure works for BASF's 30,000 tonne 2-Ethylhexanoic Acid production plant in Kuantan, which it will deliver by the second quarter next year.
Going forward, he expects to maintain the group's financial performance in the financial year ending Dec 31, 2015 (FY15) despite the backdrop of global economic uncertainties and a volatile market landscape due to lower crude oil prices.
For the first quarter ended Mar 31, 2015, the group's net profit was up by 15.52% to RM23.29 million from RM20.16 million in the previous corresponding quarter. Revenue fell to RM363.21 million, compared with RM393.95 a year ago.