Nestcon bags RM165 mil works contract for Balingan coalfield in Mukah

KUALA LUMPUR (Sept 20): Nestcon Bhd has bagged a RM165.08 million contract to provide site clearance, earthwork and ancillary works for Block 1 of CBS 2 in Sungai Bakau at the Mukah-Balingan coalfield in Sarawak.

In a bourse filing on Tuesday (Sept 20), Nestcon said its wholly-owned subsidiary Nestcon Infra Sdn Bhd, had accepted a two-year letter of award (LOA) with an option to extend for another two years, from BARA Mining & Construction Sdn Bhd, after it was appointed as a contractor for the project.

“BARA and Nestcon Infra shall enter into a formal contract along with the necessary supporting documents within 21 days from the acknowledgement of the LOA.

“The LOA is a binding agreement between BARA and Nestcon Infra before the execution of the contract,” it said.

Subsequently, Nestcon Infra shall carry the project in accordance with applicable regulations, specifications, approvals and requirements specified and approved by the relevant authorities.

Nestcon added that the contract is expected to contribute positively to the net assets per share, earnings per share and gearing of the company for the financial year ending Dec 31, 2022 and throughout the duration of the project.

Nestcon’s share price finished 1.32% of half a sen higher at 38.5 sen on Tuesday, bringing it a market capitalisation of RM247.9 million.