Sarawak Consolidated wins Rm175.4mil deals

Contracts come after Abdul Karim raised his stake to 50.53%

KUCHING: Sarawak Consolidated Industries Bhd (SCIB), which saw a major ownership change recently, has been awarded five engineering, procurement, construction and commissioning (EPCC) contracts in Malaysia and overseas worth a combined Rm175.4mil.

The contracts came less than a month after billionaire Datuk Mohd Abdul Karim Abdullah raised his stake in SCIB to 50.53% via a mandatory takeover offer of the remaining shares in the company not already owned by him at RM1.10 each.the offer expired on Sept 26.

Abdul Karim, who was appointed SCIB chairman on Oct 1, is also group managing director and CEO of Serba Dinamik Holdings Bhd, an oil and gas player which has worldwide operations.

SCIB said it has accepted letters of award for three EPCC contracts – in Indonesia, Qatar and Oman – for Us$27.99mil (Rm117.2mil).

The Indonesian contract involves project temporary facility PKG05 HEC office building for client PT Samudera Nusantara Energi. The contract period is from Oct 3, 2019 to May 2, 2020.

The contract in Qatar is for the construction, completion and maintenance of six villas (ground + first floor + penthouse, including external majlis, ancillary block and external block works) at Al-qutaifiya for client Pavilion Qatar Engineering Co WLL. The project’s duration is from Oct 10, 2019 to Oct 17, 2020.

The Oman contract involves complete construction of nine residential villas at Street 47, Block 327, Al Hayl, Muscat for Revenue International LLC. The contract period is from Oct 16, 2019 to Oct 15, 2020.

“The formal agreement for the contracts shall be executed in due course,” SCIB said in a filing with Bursa Malaysia on Friday.

In Malaysia, wholly-owned subsidiary SCIB Properties Sdn Bhd has accepted letter of award from Edaran Kencana Sdn Bhd (EKSB) for the main building works, Phase 1 Package C: independent utility facility. The contract is from Nov 8, 2019 to June 7, 2020.

The second contract is also from EKSB for the main building works, Phase 1 Package C: maintenance, repair and overhaul. The contract period is from Nov 8, 2019 to June 7, 2020.

SCIB said the five contracts are expected to contribute positively to the group’s earnings over their duration periods.

SCIB shares saw a strong rally last week, with gains of 30 sen at RM1.69 on Friday’s close. The share price hit an intra-week high of RM1.83, which was last seen in 2005.

The counter has jumped more than 50% compared to the mandatory offer price of RM1.10.