MMHE bags RM1.5bil OSS construction job from Petrofac

MMHE West Yard, Pasir Gudang, Johor.

KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) has via its wholly-owned and major subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd, secured a RM1.5bil award to build an offshore substation (OSS) high voltage direct current (HVDC) platform consisting of topside and jacket from Petrofac International (UAE) LLC.

In a filing with Bursa Malaysia, MMHE said the Subcontract scope consists of construction engineering, fabrication, mechanical completion, load out and sea fastening, and architectural works on engineering, procurement and construction (EPC) basis.

It said the OSS platform will comprise a topside, weighing about 30,000 tonnes (including equipment) and a jacket, weighing about 10,000 tonnes.

The duration of the subcontract is about 36 months with fabrication to begin in 2025 and completed by 2028.

In addition, MMHE said it will collaborate with Petrofac towards the possibility of another OSS of similar size.

"The subcontract is expected to contribute positively to the earnings and net assets per share of MHB for the financial year ending Dec 31, 2025, and beyond up to the completion of the subcontract," it said.

Shares in MMHE were last traded prior to the lunch break at 47 sen a share, a 3.09% decline over the reference price, on 1.89 million shares traded.