Stocks to watch: MMC subsidiary in consortium gets Petronas’ EPCC contract

by **Cals** Tue 20 May 2014, 00:03

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Monday, 19 May 2014 09:46

KUALA LUMPUR: Based on news and corporate announcements last Friday, the companies that may be in focus today could include the following:

MMC Corp Bhd unit, MMC Engineering Services Sdn Bhd, has been named as one of the firms within a consortium that has been awarded a major engineering, procurement, construction and commissioning (EPCC) contract by Petroliam Nasional Bhd (Petronas).

In a statement, Petronas said its subsidiary, Pengerang Power Sdn Bhd, has awarded the EPCC job to a consortium comprising Siemens AG, Siemens Malaysia and MMC Engineering for its Pengerang Co-generation Plant (PCP) project in Johor.

The contract requires the consortium to undertake the design, engineering, procurement, development and commissioning works and warranty for the project.

The plant’s first co-generation unit is expected to be commercially operational by mid-2017.

The PCP is one of the six associated facilities to be developed within Petronas’ Pengerang Integrated Complex (PIC) project in Pengerang. Once completed, the PCP will be able to produce 1,220mw of power to supply steam of up to 1,480 tonnes per hour to PIC.

TH Heavy Engineering Bhd has received a letter of award from JX Nippon Oil & Gas Exploration (Malaysia) Ltd to supply a floating production, storage and offloading (FPSO) vessel for the Layang Development Project in Sarawak.

Under the contract, TH Heavy will be responsible for the provision of engineering, procurement, construction, installation and commissioning and leasing of the Deep Producer 1 FPSO until Nov 17, 2023.

The contract has extension options for the lease of the FPSO facilities of one year, up to a maximum of 10 years from Nov 18, 2023.

The contract is valued at RM1.2 billion for the primary period, with an additional potential of up to RM1.47 billion should the “full extension options” be exercised.

“The award is expected to contribute positively towards the earnings and net assets per share of the company for the financial year ending Dec 31, 2014 and thereafter,” said TH Heavy.

Theta Edge Bhd’s wholly-owned unit, Konsortium Jaya Sdn Bhd, has won a RM22.8 million contract from Jabatan Akauntan Negara for the development of the Sistem Perakaunan Akruan Kerajaan Negeri.

Konsortium Jaya will be appointed as a system integrator for the development of the accrual accounting system for state treasuries.

The project is for 36 months from May 1 to April 30, 2017.

“The project is expected to contribute positively to the future consolidated earnings of the company,” said Theta, an information and communications technology service provider.

Delloyd Ventures Bhd has received a privatisation offer from major shareholder Chung & Tee Ventures Sdn Bhd.

The privatisation will be done via a proposed selective capital reduction and repayment exercise.

The automotive and oil palm plantation company said Chung & Tee, which already owns 34.24% in the firm, intends to privatise the company with the help of persons acting in concert with the acquirer.

Chung & Tee and persons acting in concert own a collective 63.58% in Delloyd.

Under the deal, minority shareholders will receive a capital repayment of RM4.80 a share.

Delloyd said the acquirer plans to privatise the firm after taking into account challenges in the auto and oil palm plantation segments.

Trading of Delloyd shares was suspended last Thursday. Prior to the suspension, the stock changed hands at RM4.35. The stock will resume trading today.

Techfast Holdings Bhd has received a takeover offer from major shareholder Wong SK Holdings Sdn Bhd for 26 sen a share.

Techfast, which manufactures computer and telecomunication components, said Wong SK already owns 22.1 million shares or 14.45% in Techfast.

Datuk Wong Shee Kai is said to be the ultimate offeror for the exercise as he is the controlling shareholder in Wong SK.

Techfast said the acquirer intends to maintain the listing status of the company.

Wong SK had emerged a major shareholder in Techfast on April 30 this year. On that day, it bought a 12.3% stake in the latter on the open market.

Techfast’s share price rose four sen to 25 sen at market close last Friday.

This article first appeared in The Edge Financial Daily, on May 19, 2014