IJG EYES BIG-TICKET CONTRACTS
East Coast Rail Link jobs, among others, can help company return to black, says MD
IKHMAS Jaya Group Bhd (IJG) is confident of returning to the black for its financial year ending December 31, 2019 (FY19), backed by secured and ongoing bids for bigticket civil construction and infrastructure projects, including the East Coast Rail Link (ECRL).
Group managing director Datuk Ang Chen Siong said the company had managed to secure sub-contracts worth RM875 million year-to-date, mainly for infrastructure projects.
“The big projects we have secured include the Light Rail Transit Line 3 (LRT3) and the Setiawangsa–Pantai ExpresswayDUKE Phase 3. The work will give us earnings visibility for the next two to three years,” he said after a shareholders’ meeting, here, yesterday.
Ang said the company would bid for up to RM2 billion worth of public sector infrastructure and construction projects in the remaining quarters of the year.
“Our track record is proven as the general contractor specialising in bore piling, foundation
work, bridge and flood mitigation works,” he added.
Ang said the company’s proven track record would be a plus point in securing ECRL-related contracts.
The government had announced that 40 per cent of the civil works for the ECRL project would be awarded to local contractors following the new supplementary agreement signed with China Communications Construction Co Ltd on April 12.
“Our company’s proven track record gives us the confidence to secure ECRL contracts.”
The construction cost for the ECRL project is now reported to be RM68.7 million per kilometre compared with RM98 million per kilometre previously.
For the first-quarter ended March 31, IJG posted a net loss of RM14.72 million compared to a net profit of RM5.18 million previously.
Revenue dropped 22.09 per cent to RM65.19 million from RM83.67 million previously due to lower construction activities, impairment and provisional charges.