IJM’s fourth key construction job, oil refinery complex garners positive view

KUALA LUMPUR: IJM Corporation Bhd’s (IJM) fourth key construction job and development of an oil refinery complex by a new investor has garnered positive views from analysts.

In a filing on Bursa Malaysia, IJM announced that whollyowned subsidiary IJM Construction Sdn Bhd has accepted the Letter of Acceptance from Damansara Uptown Retail Centre Sdn Bhd for the design, construction, completion and commissioning of the proposed 31-storey office tower with a three level-basement car park (Uptown 8 corporate office tower).

The project is for a contract sum of RM378.23 million and the completion period is 39 months.

AmInvestment Bank Bhd (AmInvestment Bank), which was was positive on this development, highlighted that this boosted IJM’s year to date (YTD) financial year (FY) March 2018 job wins to RM1.6 billion and the group’s outstanding construction order book to RM9.5 billion.

In another update, IJM’s 60 per cent-owned Kuantan Port Consortium Sdn Bhd has roped in a new investor in Kuantan Port, namely Hong Kong-listed NewOcean Energy Holdings Ltd (NewOcean) which will build and operate a RM5.1 billion oil refinery complex – including a tank farm and a blending plant – on a 60-acre site in Kuantan Port.

“According to news reports, the oil refinery complex will be developed over two phases,” the research firm said.

“The first phase with an annual capacity of 1.5 million tonnes will be completed in 24 months, while the second phase with a capacity of two million annually will take another 18 months to build.”

AmInvestment Bank was also positive on this latest development.