KUALA LUMPUR, MALAYSIA – 21 MARCH 2016 : Kerjaya Prospek Group Berhad’s (“Kerjaya” or the “Company”) (formerly known as Fututech Berhad), 70% owned subsidiary; Future Rocks Sdn Bhd (“FRSB”), has on 21st March 2016 accepted a Letter of Award (“LA”) for the sum of RM181.31 million from China Communications Construction Company (M) Sdn Bhd (“CCCC”) dated 17th March 2016 for dredging works of a project known as “Reclamation For Seri Tanjung Pinang (Phase II) Development (STP 2) Penang” (“the Project”) which forms part of the infrastructure works of the Project.
The LA appoints FRSB as the subcontractor to undertake the entire channel dredging works under Package 1 of the Project.
“This contract win is the Company’s first of such infrastructure project and it is one of the key infrastructure works of Seri Tanjung Pinang (Phase II). The contract has widened our portfolio of residential and commercial construction works of existing and prominent clients such as SP Setia Berhad, E&O Berhad and EcoWorld Development Berhad. Having extended our infrastructure works with our new client, CCCC, it has certainly uplifted our corporate profile and capabilities, which will enable us to secure more projects in the future.
Historically, our key projects have largely been in the high-rise construction works but this infrastructure project will further expand our expertise into the field and simultaneously diversify our construction portfolio, and further enhance the earning margin for the Kerjaya. Moving forward, we will be in a stronger position to tender for a broader spectrum of construction projects. This is a strong start to the year for Kerjaya and we are confident that we can secure more construction projects and replenish our current order book. With this new LA, the outstanding construction order book of Kerjaya has increased from approximately RM1.9 billion to RM2.1 billion.” commented Datuk Tee Eng Ho, Executive Chairman of Kerjaya.
The Project, where CCCC is the principal contractor for Seri Tanjung Pinang Development Sdn Bhd, will commence work soon and is expected to be completed by March 2018.
“In the meantime, we will continue to be on the lookout for more infrastructure projects and actively tender for good construction projects. In addition to our enlarged resources and capabilities, Kerjaya is in a strong net cash position where we are able to secure more projects and have a ready cash pile to guarantee and support project execution.” said Datuk Tee.
Internally awarded and adding to Kerjaya’s construction order book is the main building works of its project known as Vista Residences @ Genting Highlands worth RM102.45 million. The construction work is scheduled to start in April 2016 with a targeted completion date of March 2018.
Earlier in January 2016, the Company has completed its acquisition exercise of the entire equity interest in Kerjaya Prospek (M) Sdn Bhd and Permatang Bakti Sdn Bhd for a total purchase consideration of RM458.0 million. The additional Private Placement Exercise is in progress and is targeted to be completed by June 2016.