KNM gets RM51.5mil Petrofac contract

  • Investment
  • Saturday, 19 Oct 2019

PETALING JAYA: KNM Group Bhd has received a RM51.48mil contract to supply Petrofac Ltd with pressure vessels and columns for the Ain Tsila Development Project located in Algeria.

In a filing with Bursa Malaysia yesterday, KNM said its unit FBM-KNM FZCO has accepted the purchase order from Petrofac Emirates LLC, a wholly-owned subsidiary of Petrofac.

Petrofac is involved in the oilfield services to the international oil and gas industry and currently listed under the London Stock Exchange.

Located around 1,100km south-east of Algiers, the Ain Tsila is an oil and gas project to produce gas, LPG and condensate.

KNM said the transaction is expected to contribute positively to the group’s earnings for the financial year ending Dec 31, 2019 (FY19) and FY20.

“The total supply and delivery duration of the transaction is for a period not exceeding Nov 8, 2020,” it said.”

Shares in KNM closed one sen higher to 45.5 sen yesterday.

On a year to date basis, KNM’s share price has risen more than five times.

Earlier this month, KNM bagged a slew of contracts in Balikpapan, Indonesia worth a total of RM107.79mil.

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