KUCHING: With its second water-related project in Sarawak this year, Puncak Niaga Holdings Bhd (Puncak Niaga) is moving a step closer to secure RM600 million worth of water related construction jobs this year.
AmResearch Sdn Bhd (AmResearch) in a report said Puncak Niaga’s prospects remains intact following its third water supply project that the company has secured worth RM53.4 million in Pakan, Sarawak recently.
AmResearch recalled that the company had earlier secured two other projects – a sewerage pipe package worth RM394 million in Kuala Lumpur last February and a RM97 million water treatment plant construction job in Sarikei in May.
With the latest water-related construction project, Puncak Niaga has been awarded a total of RM544.4 million worth of water-related contracts year-to-date.
Thus, the research firm expects the company to secure RM600 million worth of water-related construction jobs this year to boost its earnings.
Meanwhile, Puncak Niaga in an announcement to Bursa Malaysia on June 12 said the scope of works for the latest water supply project in Pakan include the supply, jointing, laying of delivery and pumping pipelines and construction and completion of three water reservoirs.
Besides that, the company also needs to supply and provide installation of mechanical and electrical equipment including testing and commissioning of the water supply project. The contract will have a construction period of 21 months and is projected to be completed by September 2015.
On another note, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) said the company’s orderbook is expected to keep the company’s busy for the next two to four years.
Additionally, MIDF Research observed that Puncak Niaga’s oil and gas business remains supportive of the company’s financial performance.
Puncak Niaga’s oil and gas segment has an orderbook of approximately RM2 billion from Petroliam Nasional Bhd (Petronas) for oil and gas transportation and installation jobs.
Together with Puncak Niaga’s water-related construction business, both AmResearch and MIDF Research remains optimistic that the company will gain from more contracts award from water and oil and gas projects to sustain its forward earnings.