PETALING JAYA: Process equipment manufacturer and energy firm KNM Group Bhd , via its indirect wholly owned unit FBM-KNM FZCO, has won a contract worth RM19.88mil for the supply of carbon steel pressure vessels from TTSJV WLL.
In a filing with Bursa Malaysia yesterday, the group said the purchase orders were for the BMP-modernisation programme-Bahrain.
TTSJV WLL is jointly owned by the Technip group of companies and Samsung Engineering Co Ltd under the laws of Bahrain.
KNM said the supply and delivery duration of the product was for a period of 12 months.
FBM-KNM FZCO is mainly involved in the designing and manufacturing of air-cooled heat exchangers and specialty shell and tube heat exchangers, as well as processing gas waste heat boilers for the oil, gas, petrochemical and desalination industries.
However, the group said the work involved for the contract is exposed to certain risks in the power, oil, gas, petrochemical and energy industries. “These include changes in general economic conditions such as, but not limited to, inflation, environmental, health and safety regulations, taxation, foreign exchanges, interest rates, labour and material supply, changes in business and operating conditions such as, but not limited to, government and statutory regulations and deterioration in prevailing market conditions,” it added.
“Although the group with its vast experience may undertake efforts to mitigate the various risk factors, there is no assurance that any change in the above risk factors would not have a material adverse effect on the business and operations of KNM or FBM-KNM FZCO,” it added.