KUALA LUMPUR (July 18): Cable and wire manufacturer Southern Cable Group Bhd (SCable) has bagged a RM293.8 million contract to supply power cables to Tenaga Nasional Bhd (TNB) for a one-year period from July this year, with an optional extension for another year.

In a bourse filing on Monday (July 18), SCable said its wholly-owned subsidiary Southern Cable Sdn Bhd had secured a letter of award (LOA) from the national utility giant, bringing the group's total orders in hand to RM816.3 million to be progressively fulfilled over the next three years.

The group’s largest contract entails SCable delivering low and medium voltage underground cables and conductors to TNB’s distribution network division. Prior to this, SCable had obtained similar LOAs from TNB since 2019.

In a separate statement, SCable managing director Tung Eng Hai said the latest LOA will enhance the group’s earnings prospects for the current financial year ending Dec 31, 2022 and onwards.

SCable MD Tung Eng Hai (Photo credit: Southern Cable Group Bhd)

“Overall, the recovery in economic activities in Malaysia bodes well for us. We anticipate higher orders from various industries going forward, including telecommunications, and construction and infrastructure, as companies embark on systems upgrades and/or expansions to equip themselves for the next growth phase.

“Our integrated facilities and internationally-certified cables and wires are supported by a strong distribution network, which helps us cater to any industry nationwide in a timely manner. We are optimistic about our prospects ahead,” he added.

SCable shares closed two sen or 5.97% higher at 35.5 sen on Monday, bringing the group a market capitalisation of RM279.82 million.