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HANDAL (7253) - Handal Resources bags RM14.6m crane fabrication job from SapuraKencana

May 5, 2015 : 5:53 PM MYT  

KUALA LUMPUR (May 5): Handal Resources Bhd  has clinched a RM14.6 million crane fabrication contract from SapuraKencana Petroleum Bhd .

In a statement today, the integrated offshore crane services provider and fabricator said its wholly-owned subsidiary Handal Offshore Services Sdn Bhd has received the letter of award in relation to the works from SapuraKencana (fundamental: 1.3; valuation: 1.4).

It added the contract stipulated the engineering, procurement, construction, installation and commissioning of offshore pedestal cranes to SapuraKencana to be delivered within one year.

Handal Resources group advisor and deputy managing director Joel Emanuel Heaney said this is an exciting time for the group, as they are able to secure this contract from a notable oil and gas player amid the challenging and increasingly competitive industry.

"Securing this letter of award to fabricate API*-2C monogrammed cranes, combined with numerous others secured from other international players in recent months, points to our competitive edge and strengthens our track record further," he added.

Heaney said these cranes will be fabricated in any of the group's two API*-2C yards in Malaysia.

Following the latest award, Handal Resources' order book stands at RM194 million across the crane fabrication and services segments, with revenue recognition expected to last until 2018.

Heaney said the group's constant pursuit of business expansion is accompanied by its commitment in ensuring crew members' safety.

Handal Resources had recently carried out a "safety stand down" for crew members together with clients to emphasize safety measures when carrying out duties.

Heaney added that the contracts followed a remarkable year for the group.

For the financial year 2014 ended Dec 31 (FY14), Handal Resources saw its net profit almost tripled to RM6.2 million from RM2 million a year ago, on higher sales and enhanced operational efficiencies.

Its revenue also rose 22.9% to RM123.8 million in FY14, versus RM100.7 million previously, as it recognised higher sales mainly from the integrated crane services, crane fabrication, as well as the supply, fabrication and servicing of industrial equipment and tank segments.

Handal Resources shares closed up 2.5 sen or 7.46% at 36 sen today, translating into a market capitalisation of RM53.6 million. SapuraKencana also up 8 sen or 3.01% to close at RM2.74 for a market cap of RM15.939 billion.

http://www.theedgemarkets.com
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