The shares of Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) rocketed over 10% today (Monday) following the report of the acquisition of a contract worth RM1.4 billion from Carigali-PTTEPI Operating Company Sdn Bhd (CPOC).
According to MHB's bourse filing on Monday, the contract was awarded to its subsidiary, namely Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) through a letter dated Feb 2 from CPOC.
CPOC acts as the operator of PC JDA Ltd, a subsidiary of Petronas Carigali Sdn Bhd and PTTEP International Ltd (PTTEPI).
Through the contract, MHB will carry out the engineering, procurement, construction and installation (EPCI) of five wellhead platforms in the Malaysia-Thailand Joint Development Area (MTJDA).
The MTJDA is an area of overlapping continental shelf claimed by Malaysia and Thailand, which the two governments agreed to in 1979 to jointly explore and exploit non-living natural resources on an equal basis.
The 22-month contract is expected to contribute to the MHB group's earnings and net assets per share for the financial year ending 31 December 2023 and beyond until it is completed.
Following that, MHB shares jumped about 10.2% to 75 sen, before paring some gains to trade at 74 sen with a market value of RM1.17 billion (4.00pm).
The surge was also driven by an earnings report that saw a profit attributable to owners of RM27.1 million in the fourth quarter, thus reversing a loss of RM107.8 million a year earlier.
