KUCHING: KKB Engineering Bhd (KKB) has secured three contracts with combined value of RM30.8 million. The first contract from Petronas Dagangan Bhd is for the price agreement for new and reburbishment of LPG cylinders for Petronas Dangangan:fabrication,reconditioning of LPG cylinders and to supply and delivery of LPG compact valves.
Petronas Dagangan also awarded a contract to KKB’s associate company Edisi Optima Sdn Bhd for the price agreement for refurbishment of LPG cylinders for Petronas Dagangan:requalification and shot-blast repainting of LPG cylinders.
“A formal agreement for these contracts shall be executed in due course,”KKB said in a filing with Bursa Malaysia.
KKB also received a purchase order from Laras Jaya Engineering Sdn Bhd (LJE) for the supply of mild steel concrete lined pipes for Sarawak water supply grid programme – stressed areas.
“The combined total contract sum for the contracts/order is worth approximately RM30.8 million,” said the leading steel fabricator.
Both Petronas Dagangan contracts are effective from March 15,2019 and will be valid for three years,with an option to extend for up to two years.
The completion date for the LJE’s order is within nine months.
“The contracts/purchase order will have no effect on share capital of the company and is expected to continue positively towards the earnings and net assets of the company and group for the duration of the supply period,” said KKB.
On the risk factors for the contracts/order,the company said these include execution risks,such as availability of skilled manpower and materials,changes in pricing,weather conditions and /or political,economic and regulatory conditions.
Barely three weeks ago, KKB was awarded two contracts worth RM110.87 million from Jabatan Bekalan Air Luar Bandar Sarawak under the Sarawak water grid project.
The first contract is for the design, construction, completion, testing and commissioning of the proposed Package SRI (southern region) while the second is for the proposed water supply from Kota Samarahan to Sebuyau – construction and completion of mild steel concrete lined pipeline and all associated works.
The contract period for the first and second contracts are 21 months and 12 months respectively.
KKB group executive director Kho Pok Tong was quoted in a recent news report that KKB had quoted some RM85 million worth of steel pipe supply to potential clients not only for Sarawak water grid project but also for water supply projects in Sabah.
KKB is Sarawak’s only steel water pipe manufacturer, and the company also owns a manufacturing plant in Kota Kinabalu,Sabah.
Under the Sarawak water grid programme, more than 240 contracts are being awarded progressively as the state government has set aside RM2.8 billion in 2019 and 2020 to fund these projects.
