KUCHING: Hock Seng Lee Bhd (HSL) and its consortium partners have been awarded a power substation project worth about RM90.99 million.
The contract from Sarawak Energy Bhd is for a 275/132/33/kV substation project in Matang here.
HSL has a 45 per cent stake in the consortium, whose other members are Larsen & Toubro Ltd of India and its associate Larsen & Toubro (East Asia) Sdn Bhd.
“The scope of works for HSL includes earthworks, piling, civil infrastructure works, building and its related mechanical and electrical works,” HSL said in a filing with Bursa Malaysia yesterday.
The contract period is 32 months, commencing Jan 7, 2019.
“The contract is expected to contribute positively to the earnings and net assets of HSL group as the project progresses during the contract period.
“However, the transaction will not have any effect on the share capital and substantial shareholdings of HSL,” the company said.
The latest contract was the second major contract secured in four months by HSL. In August, the marine engineering and infrastructure specialist won a contract from Petroliam Nasional Bhd (Petronas) for the construction and completion of Maktab Rendah Sains Mara in Bintulu for RM101.2 million.
The 36-month contract on 40 acres of hilly terrain involves piling, earthworks, infrastructure and building works for academic purposes, administration, student hostels and related amenities as well as the associated mechanical and electrical works.
As of September 30, 2018, HSL had RM2.4 billion worth of works unbilled. The group’s on-going mega projects are a work package of the Pan Borneo Highway, Kuching’s centralised wastewater management system and Miri’s wastewater project.
HSL undertakes the Pan Borneo Highway project with joint venture partner Dhaya Maju Infrastructure (Asia) Sdn Bhd. The package involves construction of a 28km stretch from Bintangor
to Julau, Durin Bridge (1.9km) and Sibu Interchange to Sungai Gua Bridge (46km).
HSL’s other on-going projects include the X-FAB administration building works in Samajaya Free Industrial Zone, education institutions in Miri and Mukah and offices for the coal-fired power plant in Balingian, Mukah Division.
Last month, managing director Datuk Paul Yu Chee Hoe said the HSL group was eyeing substantial new contracts, including Sarawak coastal road and second trunk road projects as well as contracts associated with the state’s water grid project.
He said the group’s procurement team had been busy with pre-qualification and tender submissions for these mega infrastructure projects expected to be rolled out soon.
In the third quarter ended Sept 30, 2018, HSL group revenue surged by 65 per cent to RM173.3 million from about RM105 million a year ago while pre-tax profit
rose to RM19.5 million from RM14.8 million or up by 32 per cent in the same period.
