Nestcon bags Rm165mil Bara contract

PETALING JAYA: Nestcon Bhd through its wholly-owned subsidiary, Nestcon Infra Sdn Bhd, has received a letter of award (LOA) from Bara Mining & Construction Sdn Bhd for a contract worth Rm165.1mil.

The construction service provider, in a statement, said its unit has been appointed as the contractor to provide site clearance, earthwork and ancillary works in Mukah, Sarawak.

The two-year job is expected to contribute positively to the net assets per share, earnings per share (EPS) and the gearing of the group for the financial year ending Dec 31, 2022.

The last recorded job of Nestcon was in July this year. Its wholly-owned subsidiary, Nestcon Builders Sdn Bhd, had accepted an LOA for a contract worth Rm118.1mil from Nescaya Etika Sdn Bhd.

Nestcon Builders was the contractor for the construction and completion of the main building and infrastructure works of a 38-storey building.

Moreover, Nestcon Infra had received a letter of intent in May 2022 from Euro Saga Sdn Bhd for a project valued at Rm91.2mil. The job entails the subsidiary to undertake civil and associated subcontract works for the Nenggiri Hydroelectric Project.

At the beginning of the year, sub-contract works for two packages in Section 1 of the East Coast Rail Link at Rm90.5mil were bagged by Nestcon.

Additionally, the construction of a 39-storey building in Bukit Jalil worth Rm188.5mil was also secured by the group.

For the second quarter ended June 30, 2022, Nestcon saw a 24% rise in revenue year-onyear (y-o-y) to Rm105.1mil from Rm84.8mil.

The group saw a hike in net profit by 174.7% to Rm2.8mil y-o-y from Rm1mil. EPS stood at 43 sen y-o-y from 16 sen previously.

The counter closed at 38 sen yesterday.