SapuraKencana Petroleum Bhd has secured a US$180.65 million (RM576.09 million) contract from Trans Thai-Malaysia (M) Sdn Bhd (TTM) for the JDA Gas Balancing Evacuation (EVA) project, pushing its orderbook in excess of RM26 billion.
The integrated oil and gas service provider company announced to the exchange that its wholly owned subsidiary Kencana HL Sdn Bhd had received the three-year contract for the provision of engineering, procurement, construction, installation and commissioning for the EVA project.
The project which SapuraKencana said would contribute positively to its earnings is expected to start in the second-quarter (2Q) of 2013 and expected to be completed by the 1Q of 2016.
SapuraKencana was recently reported by The Malaysian Reserve as being liked by research houses for its future growth potential where five research houses in their latest research report recommended ‘Buy’ calls for the company with a target price ranging from RM4.62 to RM5.05 per share.
The bullish sentiment was backed by its strong orderbook and tender book which stands at par with its orderbook.
TTM is a 50:50 joint venture on pipeline and gas separation plant projects between Thailand’s PTT Public Co Ltd and Malaysia’s Petroliam Nasional Bhd.
The project was initiated in February 2000 to transport and process natural gas from the gas reserves in Malaysia’s joint development area.
SapuraKencana’s share price rose one sen to close at RM4.02 on Monday with 11.85 million shares traded.