CEO Morning Brief

Salcon Bags Piping Works Construction Contract Worth RM20.66 Mil

Publish date: Wed, 02 Aug 2023, 08:48 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (August 1): Wastewater engineering company Salcon Bhd said that its unit Envitech Sdn Bhd received a letter of award worth RM20.66 million dated July 27 from Jurutera MTC Sdn Bhd.

Envitech is a 60%-owned subsidiary of Salcon Engineering Bhd, in turn making it a wholly-owned subsidiary of Salcon.

In a press release on Tuesday (Aug 1), the group shared that the project comprises external main sewer reticulation works for a piece of land in Batu Kawan, Seberang Perai, Penang for Messrs Eco Horizon Sdn Bhd.

Salcon added that the project is expected to be completed in 17 months from the date of possession with an expected completion date of December 31, 2024.

Meanwhile, in a filing with the stock exchange on Tuesday, the group added that the project is a construction project and “has no option for renewal.”

Additionally, Salcon perceives the project to contribute positively towards the earnings and net assets of the group for the financial years ending Dec 31, 2023 and Dec 31, 2024.

“The award of this project demonstrates our client’s trust and confidence in the capability of our wastewater engineering subsidiary, Envitech Sdn Bhd and its excellent track record. We are fully confident of successfully executing this project to its completion,” said Jamiluddin Amini Sulaiman, chief operating officer of Salcon Engineering Bhd.

Earlier this April, Salcon Engineering bagged a RM65 million contract to build a small hydropower plant of 10.44MW at the Sungai Selangor Dam, with a scheduled completion date of May 3, 2025.

At market close, shares of Salcon remained unchanged at 18.5 sen, translating into a market capitalisation of RM187.3 million.

Read also:
Salcon clinches Sungai Selangor Dam hydro power plant project for RM65 mil

Source: TheEdge - 2 Aug 2023

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