CEO Morning Brief

Southern Cable Bags RM332m Cable Supply Contract Extension From TNB

edgeinvest
Publish date: Fri, 11 Aug 2023, 08:48 AM
edgeinvest
0 18,803
TheEdge CEO Morning Brief

KUALA LUMPUR (Aug 10): Southern Cable Group Bhd has received an extension of contract from Tenaga Nasional Bhd (TNB) worth RM332.1 million to supply underground power cables to the utility giant.

The group secured the one-year extension until July 2024 through its wholly-owned subsidiary Southern Cable Sdn Bhd. The subsidiary was awarded the original one-year contract, valued at RM294 million, in July 2022.

“The enlarged orders in hand further reinforce our position as a leading cable and wire manufacturer, supporting strong momentum to strengthen our earnings," said Southern Cable managing director Tung Eng Hai.

“We are also experiencing steady demand from other customers, comprising engineering, procurement, construction and commissioning (EPCC) contractors and resellers. Capitalising on the current market conditions, we aim to seize opportunities for growth,” Tung said in a statement to Bursa Malaysia on Thursday (Aug 10).

So far this year, the group has reported over RM500 million worth of new contract wins, comprising more than RM460 million worth of supply contracts from TNB and a RM44.8 million battery systems supply contract from Telekom Malaysia Bhd. Its year-to-date wins have surpassed the total win of RM390 million achieved in 2022.

The group is also a registered supplier for cables and wires to TNB, with whom it has enjoyed a business relationship for the past 19 years. Besides TNB, the group also caters to other utility providers such as Sabah Electricity Sdn Bhd and Sarawak Energy Bhd.

Tung said that the group is committed to supporting Malaysia’s Energy Transition Roadmap to assist the country in achieving its long-term energy security objectives.

“Southern Cable has the capability to produce a diverse range of products used in multiple sectors, such as power distribution and transmission, renewable energy, telecommunications, building and construction, and infrastructure, as well as manufacturing and processing industries, including oil and gas processing and petrochemical plants," he said.

Shares of Southern Cable finished unchanged at 35.5 sen on Thursday, with a market value of RM284 million.

Read also:
Southern Cable bags RM294 mil power cable supply contract from TNB

Source: TheEdge - 11 Aug 2023

Related Stocks
Market Buzz
Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment