Econpile optimistic of good results on RM1.2b order book
KUALA LUMPUR: Econpile Holdings Bhd, a piling and substructure specialist, sees bright prospects of delivering good results in the quarters ahead, said chief executive Raymond Pang.
At the sidelines of Invest Malaysia 2018, here, yesterday, Pang said Econpile’s order book totalled RM1.2 billion and his team would be busy executing the jobs for the next two years.
“Among the big packages we’re executing are part of the mega-sized infrastructural projects such as the Light Rail Transit Line 3, Sungai Besi-Ulu Kelang Elevated Expressway and the Mass Rapid Transit (MRT) Line 2,” he said.
“Over the years, we’re increasingly taking on deeper job packages, as deep as 37m below ground. That works out to be 11 basement levels,” said Pang.
He said Econpile was in a niche business, of which its opportunities of booking higher margin jobs were better than other contractors.
“As piling and foundation works are usually in the early stage of construction works, payment and cash flow risks are substantially reduced,” he said.
Just over a year ago, Econpile clinched a RM92.5 million contract to build the diaphragm wall for the Kampung Baru north underground station for the Klang Valley MRT Sungai Buloh-Serdang-Putrajaya Line.
Pang said the contract involved construction and completion of tunnels, stations and associated structures from Jalan Ipoh north escape shaft to the Desa Waterpark south portal.
“We learn to be more cost-efficient from our experience in an earlier MRT job package Line 1. Our profit margin for the job package in MRT Line 2 is much better,” he said.
When asked on a news report stating that Econpile is close to securing a piling contract worth at least RM100 million, Pang confirmed the value but said the project owner was not a utility company.
“Please wait for our announcement to Bursa Malaysia... It will be soon.”
Pang said Econpile’s customers and projects were based domestically and there were no immediate plans to venture overseas.
“There is enough job flow in Malaysia and our focus remains in the homefront,” he said.