Ekovest secures highway contract in Sarawak
KUCHING: Ekovest Bhd (Ekovest) announced that its wholly-owned subsidiary, Ekovest Construction Sdn Bhd (Ekovest Construction) has entered into a joint venture and shareholders agreement with Samling Resources Sdn Bhd (Samling Resource) to jointly undertake the Phase 1 development and upgrading of the Pan Borneo Highway in Sarawak.
The work package contract WPC-02 (Semantan to Sg Moyan Bridge + KSR Interchanges) has a total contract value of RM2.1 million.
A filing on Bursa Malaysia shows that joint venture company (JV Company), Samling-Ekovest JV Sdn Bhd, will be incorporated as the vehicle for both parties to undertake the implementation of the project. Samling Resources shall hold 70 per cent in the JV Company, while the remaining 30 per cent will be held by Ekovest Construction.
Commenting on the new contract, Ekovest managing director Datuk Seri Lim Keng Cheng said: “The JV project represents an opportunity for both parties to co-operate and leverage on the strength and expertise of one another.
“Ekovest Construction has the experience and track record in providing technical expertise and procurement of construction materials and equipment to undertake the project.
“Meanwhile, Samling Resources has the experience and expertise to provide management resources in liaisons with sub-contractors and the state government in East Malaysia.
He said the JV project also represents an opportunity for Ekovest to participate in large scale construction projects in East Malaysia. In November 2016, Ekovest announced net profit of RM40.1 million for the first quarter of the financial year ending June 30, 2017 (1QFY17), which represents a thirteen-fold increase from RM2.9 million in the corresponding period last year.
Its revenue amounts to RM203.55 million, a 52 per cent increase from a year ago. This translates to an improved earnings per share ( EPS) of 4.69 sen, as compared to 0.35 sen in 1QFY16.
The increase in the revenue and net profit for the reported period was mainly due to higher revenue contribution from the construction segment, with projects such as DUKE Phase2 and the commencement of preliminary and enabling work for Setiawangsa-Pantai Expressway (SPE) (formally known as the Duke Phase- 3).
Barring any unforeseen circumstances, Ekovest is confident that the group’s performance will be much better for the financial year ending June 30, 2017, as compared to the previous financial year.