KUALA LUMPUR (Oct 11): Straits Energy Resources Bhd has bagged a contract worth RM27.7 million for the installation, testing and commissioning aluminium XLPE underground cables and accessories for asset development for Tenaga Nasional Bhd (TNB).

In a Bursa Malaysia filing on Wednesday (Oct 11), the marine fuel supplier said its 70% indirect subsidiary Straits CommNet Solutions Sdn Bhd (SCS) accepted a letter of award (LOA) from Tianu Sdn Bhd on Tuesday. Tianu was awarded this project by TNB and as the main contractor, has joined forces via a smart partnership with SCS to deliver the project.

“This strategic collaboration represents a fusion of Tianu's extensive experience in cable technology and SCS’s proficiency in network solutions,” the filing read.

Tianu is principally involved in mechanical and electrical services construction and general services, and supply and services of security tools and protection control, fire prevention system and control tools, electrical engineering and electronics, ICT telecommunication, furniture and fittings.

Meanwhile, SCS is principally involved in designing, developing, researching and handling all types of telecommunication products, and provides a broad range of network development services.

Strait Energy said the contract period is one year, with an option to extend for another one year.

It should be noted that SCS shall prepare a performance bond for the sum of RM1.49 million within 28 days from the date of LOA. The performance bond shall be valid and enforceable until 12 months after the expiry of the contract period.

The LOA is expected to contribute positively towards Strait Energy’s future earnings, earnings per share, net assets per share and gearing for the financial year ending Dec 31, 2023 (FY2023) and the financial years thereafter for the duration of the LOA.

At 4pm, shares of Strait Energy (formerly known as Straits Inter Logistics Bhd) were up one sen or 8.7% at 12.5 sen, giving the group a market capitalisation of RM113.06 million.

Year-to-date, the stock has gained 9%.