There is RM6.4mil forex loss in Q3 FY19. If exclude this one-off loss, MHB is actually profitable in this quarter. The core EPS without exceptional forex loss is ~0.08sen. It is not much but at least MHB turnaround in this Q3 FY19.
The tender book jumped 4.3x if compared to last quarter. The higher tendering reflect improving O&G activities, and higher tender book also gives higher opportunity to win more contracts for future income stream.
Bekok Oil EPCIC Contract from PETRONAS Carigali Sdn Bhd
Malaysia Marine and Heavy Engineering Holdings Berhad (MHB or Group) is pleased to announce that its wholly owned subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) has secured a contract from PETRONAS Carigali Sdn Bhd (PCSB) to undertake the Provision of Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) for the Bekok Oil Project.
The works include the supply and installation of new BEDP-A and BEDP-B Wellhead Platforms which consist of topsides, substructures and bridges linking each of the topside to the existing Bekok-A and Bekok-B platforms respectively. The targeted project duration for the fabrication works to be completed is 9 months from the award until Ready-for-Rig stage. Upon completion of fabrication works, the platforms will be installed at PM9 Field, located in southeastern of Malay Basin, Peninsular Malaysia, approximately 260 kilometres from Terengganu Crude Oil Terminal.
EPCC Contract for Bergading MRU module from HESS
MMHE has also recently secured a contract for Bergading Central Processing PlatformMercury Removal Unit (CPP-MRU) Integration Project from Hess Exploration and Production Malaysia B.V. It covers engineering, procurement, construction and commissioning (EPCC) works for Bergading MRU module. Upon completion the module will be installed and integrated to the existing Bergading CPP, North Malay Basin.
Wan Mashitah Wan Abdullah Sani, Managing Director and Chief Executive Officer of MHB, commented, “These new contracts signify continued trust of our clients in our capability in providing innovative solutions with the highest standard of safety, quality, time and cost. Our focus remains to ensure efficiency and effectiveness in the execution of project deliverables as per targets set”.
Ok, read the related news and announcement from Bursa that the hearing of payment claim has been adjourned to 18 December 2019. Of all the positive factors we know as of now, it should be doing well in 2020. And hopefully its share price would jump then.
MATERIAL LITIGATION E.A TECHNIQUE (M) BERHAD ADJUDICATION DECISION DATED 4 DECEMBER 2019 IN RESPECT OF ADJUDICATION REFERENCE NO.: ADJ-2638-2019 BETWEEN MALAYSIA MARINE HEAVY ENGINEERING SDN BHD AND E. A. TECHNIQUE (M) BERHAD Amended Announcements Please refer to the earlier announcement reference number: GA1-05122019-00046
E.A.TECHNIQUE (M) BERHAD
Type Announcement Subject MATERIAL LITIGATION Description E.A TECHNIQUE (M) BERHAD ADJUDICATION DECISION DATED 4 DECEMBER 2019 IN RESPECT OF ADJUDICATION REFERENCE NO.: ADJ-2638-2019 BETWEEN MALAYSIA MARINE HEAVY ENGINEERING SDN BHD AND E. A. TECHNIQUE (M) BERHAD 1. INTRODUCTION
E.A. Technique (M) Berhad (“Company”) refers to the announcement dated 11 June 2019 made by the Company in respect of the receipt of a Payment Claim by Malaysia Marine Heavy Engineering Sdn Bhd (“MMHE”) pursuant to Section 5 of the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”).
The Board of Directors of the Company wishes to announce that on 4 December 2019, Mr Kamraj Nayagam (“Adjudicator”), had delivered its Adjudication Decision dated 4 December 2019 (“Adjudication Decision”) in the Adjudication Reference No.: ADJ-2638-2019 between MMHE and the Company.
2. BACKGROUND INFORMATION
On 29 May 2019, the Company received a Payment Claim dated 29 May 2019 pursuant to Section 5 of the CIPAA from MMHE’s solicitors, Messrs. Mohanadass Partnership for a total amount of US$6,096,791.91.
The Company then served on MMHE a Payment Response dated 14 June 2019 disputing MMHE’s claim.
MMHE filed the Adjudication Claim on 4 September 2019, to the Company claiming for a sum of US$6,096,791.91, the sum relates to allegedly unpaid invoices for additional works carried out pursuant to the ‘Demolition, Refurbishment and Conversion of M.T. Nautica Bergading (ex-SARK) into a Floating, Storage and Offloading (FSO) Facility for Full Field Development (FFD) Project, North Malay Basin (NMB)’ (the “Contract”).
The Company filed the Adjudication Response on 20 September 2019.
On 26 September 2019, MMHE filed its Adjudication Reply.
3. ADJUDICATION DECISION
On 4 December 2019, the Adjudicator delivered its Adjudication Decision. In the Adjudication Decision, the Adjudicator ordered the following:-
a) the Company shall pay the sum of US$6,066,995.71 including 6% of GST to MMHE (“Adjudication Sum”);
b) The Adjudication Sum shall be paid by the Company on or before 3 January 2020;
c) the Company shall pay interest at the rate of 5% per annum on the Adjudication Sum from the date of Adjudication Decision (4 December 2019) until the full and final settlement of the Adjudication Sum;
d) the Company shall bear the costs of adjudication which includes the following:-
i. RM150,000.00 being the cost to be paid to MMHE;
ii. RM54,555.69 being the reimbursement of sums paid to the AIAC by MMHE.
4. THE BUSINESS, FINANCIAL AND OPERATION IMPACTS OF THE CIPAA PAYMENT CLAIM AND THE STEPS TAKEN
The CIPAA Payment Claim is not expected to have any potential business or operational impact on the Company. At this juncture, the Company has not made any provision in the accounts as the Company is seeking advice and consultation from its solicitor to contest the matter. However, the CIPAA Payment Claim is expected to have a financial impact of approximately RM25.50 million (excluding interest) to the Company by reducing its future profit and cashflow position.
The Company is in the midst of reviewing the Adjudication Decision and may proceed to file an application to set aside and/or to stay the Adjudication Decision.
Further announcement will be made in respect of any material development thereof.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Super_SKL
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Posted by Super_SKL > 2019-08-30 15:35 | Report Abuse
Good news coming soon!