Coastal’s Pemex deal seen to lift earnings

RHB Research said the upward revision in unit price for gas sweetening services would bring in higher recurring income for Coastal Contracts and continue to strengthen its position in Mexico.

PETALING JAYA: Coastal Contracts Bhd’s recent contract addendum with Petroleos Mexicanos (Pemex) to increase the unit price for gas sweetening services is forecast to lift its earnings by RM5mil per year, says RHB Research.

In June 2022, Coastal Contracts’ Perdiz sweetening plant was modified to expand its processing capacity to 180 million standard cubic ft per day (mmscfd) from 150 mmscfd.