Kencana ... May 09

It is expected to win two contracts worth RM110 million collectively, from oil majors to fabricate offshore structures for projects in offshore Sarawak. It is learnt that the contracts will be awarded by Murphy Oil and Petronas Carigali within the next two weeks.

Kencana, which has an order book in excess of RM1 billion, is expected to build the offshore structures over seven and nine months. They will be fabricated at the company's 27.14ha fabrication yard in Lumut Industrial Park, Perak.

Kencana will commence work on the first contract worth around RM70 million this month (May 2009). The company is fine-tuning the figures for the second contract, which may be worth about RM40 million.

For the year-ended July 31 2008, Kencana's net profit jumped 53 per cent to RM85.1 million while revenue surged 76 per cent to RM1.45 billion. The company is aiming to maintain its RM1 billion annual turnover despite low crude oil prices.

The bulk of Kencana's current order book is made up of Petronas projects.