Kelington gets contracts worth RM79m

PETALING JAYA: Integrated engineering solutions provider Kelington Group Bhd has secured contracts worth RM79 million from its multinational clients in Malaysia and Singapore for multiple engineering services works.
In a statement yesterday, the group said its unit in Singapore Kelington Engineering (S) Pte Ltd obtained a letter of award from M+W Singapore Pte Ltd to supply and install a bulk gas and clean dry air distribution system for a total contract value of S$14 million (RM42 million).
The contract is targeted to start in September this year and expected to be completed by the first half of 2016.
As for its contract in Malaysia, Kelington said it secured a mechanical piping works contract worth RM22 million from pharmaceutical company B. Braun Medical Industries Sdn Bhd.
The group said it has also secured contracts to provide various engineering services for technology companies, namely Infineon and Hewlett Packard worth RM5 million and 10 million respectively.
With the new orders, Kelington's current outstanding orderbook stands at RM275 million.
Kelington saw second quarter net profit fall 24% to RM1.5 million for the period ended June 30, 2015 due to the provision of bonus, audit and tax fee during the quarter. Previously the same provisions were usually made in the second half of the financial year.

Revenue was also lower at RM40.6 million for the second quarter ended June 30, 2015, compared to RM43.9 million for the same quarter in 2014.
Net profit for the six-month period was lower at RM3.6 million, compared to RM4.1 million for the same period in 2014.
Revenue for the six-month period was also down RM79.1 million from RM97 million previously due to lower contributions from the group's Malaysia and China operations.
Kelington provides end-to-end engineering solutions ranging from system design to fabrication and installation of equipment to testing and maintenance.