MMHE’s EPCIC contract win garners positive outtake
KUCHING: Malaysia Marine and Heavy Engineering Holdings Bhd’s (MMHE) recent Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract win has garnered positive views from analysts.
In a filing on Bursa Malaysia, MMHE announced that whollyowned subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd has been awarded an EPCIC of Central Processing Platform (CPP) for the Bokor Phase 3 ReDevelopment Project by Petronas Carigali Sdn Bhd.
“The contract value of this EPCIC project is worth approximately RM1 billion,” MMHE said.
MMHE highlighted that the first steel cut is expected to commence in the third quarter of 2018 (3Q18) and the project is scheduled to be completed in mid-2Q20.
“Upon completion, the new CPP will be installed at Bokor field located in Baram Delta, Offshore Sarawak, in a water depth of 70 metres,” the group added.
The research arm of Kenanga Investment Bank Bhd (Kenanga Research) was positive on the contract win, which doubled MMHE’s outstanding order book of RM1.1b as of 4Q16.
Kenanga Research believed the timeline of first steel cut in 3Q18 implies that Petroliam Nasional Bhd (Petronas) is pushing the bulk of its upstream capital expenditure (capex) spending to financial year 2018 (FY18).
With the new project win, the research arm of MIDF Amanah Investment Bank Bhd ( MIDF Research) was comforted by the fact that MMHE was still able to secure significantly large engineering contracts in such operating climate.
In addition, MIDF Research commended MMHE’s effort in trying to diversify the group’s incomestream, withoutstrayingtoo far from its core competencies.
Earlier, Nasrun who read Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong’s speech at the opening, quoted him as saying the MTC had allocated about RM5 million annually for its Import Assistance Programme, aimed at assisting small and medium enterprises to import raw materials to supplement and augment supply.
“I urge industry players to expand their businesses, particularly to bilateral and regional free trade agreement markets that Malaysia has established, and also leverage on prospective markets such as China, India and ASEAN countries,” he added.
Mah also said 2017 would provide opportunitiesforthetimberindustry and the commodity is expected to continue benefiting from a strong greenback as the United States continues to be the largest market for Malaysia’s furniture exports.
“Apart from that, we are hopeful that the confidence of consumers and timber importers, particularly in the European Union, will be restored following the recent acceptance of the Malaysian Timber Certification Scheme under the Dutch Public Procurement Policy for Sustainable Timber,” he added.
He said the acceptance marked a significant achievement for the Malaysian timber industry and opens up greater market access for “Made in Malaysia” timber and timber products to the European Union countries. — Bernama