KUALA LUMPUR (Sept 7): Underground utilities and substation engineering specialist MN Holdings Bhd has secured a RM23.8 million substation engineering contract from Tenaga Nasional Bhd (TNB).

In a statement to the local bourse, MN Holdings said the utility giant awarded the contract to its wholly owned unit MN Power Transmission Sdn Bhd (MNPTSB) to establish a new 132 kilovolt (kV) main intake substation (PMU) Bekok Switching Station (Air Insulated Switchgear) in Johor.

“Under the substation engineering contract, MN Power will supply, erect, test and commission the 132 kV PMU Bekok Switching Station, including remote end substation works, complete with relevant primary, secondary and all associated civil works,” it said.

The contract is expected to be completed in 540 days from the commencement date on Sept 4, 2023.

MNPTSB is also required to furnish performance security for the contract for RM1.19 million or 5% of the accepted contract amount within 56 days from the commencement date.

Meanwhile, MN Holdings executive director Datuk Dang Siong Diang said the contract is expected to contribute positively to the group’s revenue and earnings for the financial year ending June 30, 2024 (FY2024) and FY2025, as well as future earnings and net assets per share during the duration of the contract.

“The contract is expected to strengthen and add credence to the company’s track record in the underground utilities and substation engineering industry. We will continue to leverage on our core competencies to bid for more contracts,” said Dang.

MN Holdings’ share price has climbed 75% year to date. The stock was up 0.5 sen to 31.5 sen on Thursday, valuing the company at RM126.74 million.