VARIA SECURES RM410.3 MILLION FLOOD MITIGATION PROJECT IN SEGAMAT, JOHOR

Another Contract Win Expected to Boost Varia's Earnings and Strengthen Market Position

KUALA LUMPUR, 27 AUGUST 2024 – Varia Berhad ("Varia" or the "Group"), an experienced player in the field of construction and property development, is pleased to announce that its wholly-owned subsidiary, Pembinaan Teguh Maju Sdn. Bhd. ("PTM"), has secured a contract from Kator Construction Sdn Bhd. (“KCSB”). The project, titled "Rancangan Tebatan Banjir Sungai Muar Fasa 3 Pakej 1 di Daerah Segamat" is valued at RM410.3 million.

Under the terms of this contract, PTM will act as a sub-contractor, responsible for the upgrading of the Sungai Muar, which includes a range of critical flood mitigation works. This project will be carried out over a period of 60 months, commencing on 23 July 2024, with an expected completion date of 22 July 2029.

Datuk Benson Lau, Managing Director of Varia commented, "This contract marks another milestone for Varia Berhad in securing large-scale, high-impact projects. Our involvement in the Rancangan Tebatan Banjir project is a testament to our growing expertise in infrastructure development and our commitment to contributing positively to the communities we serve. We anticipate that this project will significantly bolster our earnings over the next five years, reinforcing our strong financial position and enhancing shareholder value."

In recent developments, Varia has been securing projects. On 23 July 2024, PTM was awarded a RM555.0 million contract by Best Metro Builder Sdn. Bhd. to design and construct a comprehensive sewerage treatment plant in Penang, a project aligning with Malaysia’s environmental sustainability goals and slated for completion in March 2029. Shortly after, on 14 August 2024, PTM secured a RM61.5 million contract from Kemuncak Pesaka Sdn Bhd for developing educational facilities at Universiti Pendidikan Sultan Idris, enhancing Varia's presence in the educational construction sector. Additionally, the recent RM410.3 million contract for the 'Rancangan Tebatan Banjir Sungai Muar' project in Johor, aimed at improving flood mitigation, underscores Varia's expanding expertise and commitment to infrastructure development.

Varia’s consistent success in securing high-impact contracts reinforces its strong market presence and ensures continued revenue visibility. The Group’s orderbook now stands at RM2.2 billion and it is expected to significantly enhance the Group’s financial performance in the forthcoming periods, affirming its strategic market position across Malaysia.

As of 27 August 2024, 5 p.m., Varia’s share price stands at RM1.040 with a market capitalisation of RM442.0 million.