MTD ACPI actively bids for new jobs
> Current order book at RM500 million will only sustain the company until July next year, says CEO
BATU CAVES: MTD ACPI Engineering Bhd, which has been unsuccessful thus far in replenishing its dwindling order book, is actively seeking for new jobs, especially abroad to improve its earnings visibility.
The company’s order book currently stands at RM500 million from RM700 million a year ago.
During a press conference after MTD ACPI’s AGM yesterday, president and CEO Datuk Azmil Khalili Khalid said the company’s current order book will only last it until July next year.
Currently the loss-making construction firm only has one local job in hand, which is package V7 of the Mass Rapid Transit line 1 (MRT 1) with a contract value of RM499.98 million. Besides that, it is also undertaking a few jobs in Singapore, the Philippines and Middle East.
Describing the local construction industry as competitive and tough, he said MTD ACPI was not able to bag any new projects despite it bidding for many projects.
“We’ve bade for most projects and (the bids are) very competitive, but we still don’t get any jobs,” he said.
Azmil expressed disappointment over the company’s failed bid to be appointed as the project delivery partner together with its partner WCT Bhd for the light rail transit line 3 (LRT 3) project, despite their bid being the lowest. However, he said the company will consider bidding for the LRT 3 project package.
He added that there are not many government jobs at the moment, except the upcoming MRT 2 project, which the company is planning to bid for.
“Other than that, I don’t see (any big government jobs), even for the Pan-Borneo project, the prime minister said 90% of the jobs for Sabah and Sarawak companies, so that’s not much for us, unless JV (joint venture) with them,” he added.
Given fewer jobs in sight on the local front, he said MTD ACPI is actively looking for overseas jobs. It has a presence in 15 countries and the overseas markets account 20% to 25% of its earnings.
When asked of its tender book, Azmil declined to disclose the amount, saying it is “misleading” to just look at its tender book. He said it is instead more important to build its order book to sustain itself beyond July 2016.
He also noted that the company is hoping to clinch more jobs from its parent company MTD Capital.
For the financial year ended March 31, 2015, MTD ACPI reported a narrowed net loss of RM30.48 million compared with RM95.58 million a year ago, mainly due to provisions made for the increase in costs of RM25 million for the MRT 1 project due to late delivery.
“We feel we’ve strong ground to fight it, but auditors are very prudent, so we made a provision first, if can get back the money, it’s a bonus and goes back to the bottomline,” Azmil said.
Its net loss, however, widened from RM1.35 million to RM5.67 million for the first quarter ended June 30, 2015.
“We’ll do everything possible to make sure the company turns around,” Azmil said.
Meanwhile, he believes the weakening of the ringgit won’t pose a threat to the company’s business operations as building materials are mainly locally sourced for Malaysian projects.
“And when we do overseas projects, we source from that particular country,” he added.