THHE up 20% after unit regains Petronas licence


SHARES of TH Heavy Engineering Bhd (THHE) jumped 20% after the group said its wholly owned subsidiary, THHE Fabricators Sdn Bhd (TFSB), has obtained a licence from Petroliam Nasional Bhd (Petronas) to provide products and services to local oil and gas (O&G) companies.

The stock closed at 12 sen yesterday, its highest since Jan 5 last year with 75.46 million shares traded, while the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.3%.

The licence is valid from Dec 24, 2019, to Dec 23, 2022, according to the company’s recent exchange filing.

“With the newly approved licence, TFSB will now be eligible to be invited to bid for Petronas projects,” it said.

The company mainly focuses on fabricating offshore steel structures and providing other related offshore O&G engineering services in Malaysia.

In April 2016, TFSB barred from engaging in certain work scopes namely the tenders by Petronas Carigali Sdn Bhd for two years.

In July 2017, it was excluded by Petronas as a main contractor and from taking part in O&G projects, or to participate in any major fabrication works or engineering, procurement, construction, installation, or commissioning works.

This was due to non-performing issues on a previous contract related to offshore platform delivery.

THHE said the lifting of the ban will be subject to TFSB satisfactorily meet ing Petronas’ requirements, which were not disclosed.