KUCHING: Hock Seng Lee Bhd’s (HSL) contracts-in-hand have reached a historical high of RM3.3bil after it bagged another road project worth RM104.5mil early this week.
The latest contract is for the proposed construction and completion of Jalan Sg Bidut/Kpg Tutus/Kpg Bungan Kecil in Sibu Division that was awarded by the Sarawak government via Public Works Department in open tender.
Works for the 24-month road project is expected to commence next month.
HSL managing director Datuk Paul Yu Chee Hoe said the project was part of the Sarawak government’s RM6.05bil allocation for rural development and would enable a better access route for several villages strung along the low-lying riverine terrain besides the Igan River.
“We are very pleased to utilise our marine engineering expertise and large fleet of specialised equipment to undertake another significant roadworks project in Sarawak, ” he said in a press statement to announce the company’s second quarter ended June results yesterday.
The project’s scope of works include piling, earth and sand filling, geotechnical works, drainage and road pavement.
Yu said the projects in hand would keep HSL busy for several years.
Of the total contract value of RM3.3bil, about RM2.5bil are unbilled.
In April, HSL secured the Batang Paloh bridge project under the Sarawak Coastal Road worth RM299mil.
In addition, the company has secured several smaller sized contracts for building and bridge construction in Sibu, bringing the total value of contracts it has secured so far this year to RM605.5mil.
The major ongoing projects are a work package of the Pan Borneo Highway and centralised sewerage works (tunnelling) projects in Kuching and Miri.
According to Yu, the company is still selectively bidding for more projects.
In the second quarter, HSL posted higher group’s net profit of about RM16.4mil on expanded revenue of RM175.4mil.
This compared with RM14.1mil and RM154.2mil respectively in the second quarter of 2018.
Over a six-month period, the group’s revenue rose to RM322.1mil from RM286mil in 2018 while net profit surged to RM30.5mil from RM27.9mil.
On property development, Yu said HSL would launch the first commercial property – retail and service mall – in its flagship development – La Promenade – along Kuching Samarahan Expressway by December this year.
HSL will soon relocate its headquarters into HSL Tower in La Promenade where premium office and retail space is now available for lease.
Yu said the company is currently undertaking some RM340mil worth of property development projects.
Yesterday, HSL announced the appointments of two new independent directors - Datuk Sudarsono Osman and Datuk Laura Lee Ngien Hion.
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