KUALA LUMPUR (Aug 27): A consortium led by utility construction and tower fabrication company Rohas Tecnic Bhd (KL:ROHAS) has won a RM123 million contract from Gamuda Bhd to provide fabrication and installation works under Package 2 of the Sg Rasau water treatment plant project in Selangor.

In a filing with Bursa Malaysia on Tuesday, Rohas said the Rohas-Euco Industries Bhd (REI)-One Ocean Environment Sdn Bhd (OOESB) consortium — comprising REI, a wholly owned subsidiary of Rohas, and OOESB — last Friday accepted a letter of award issued by Gamuda M&E Sdn Bhd, a subsidiary of Gamuda Bhd (KL:GAMUDA), for the proposed job.

The consortium was established to bid for and undertake the execution of the Sungai Rasau Package 2 project.

"Upon the award of the Sg Rasau Package 2 project to the consortium, REI and OOESB will enter into a detailed joint-venture agreement with a proposed equity ratio of 51% for REI and 49% for OOESB," said Rohas.

The owner of the Sg Rasau Package 2 project is Pengurusan Air Selangor Sdn Bhd. The project is expected to be completed by the fourth quarter of 2025.

"Barring any unforeseen circumstances, the Sg Rasau Package 2 project is expected to contribute positively to the earnings of the Rohas group for the financial year ending Dec 31, 2024 (FY2024) and FY2025, and a positive financial impact is expected on the group's earnings per share and net assets per share," said Rohas.

At 3pm on Tuesday, Rohas shares were traded up half a sen or 1.69% at 30 sen, giving it a market capitalisation of RM139.43 million. The stock has risen 7.14% so far this year.