MUHIBBAH ENGINEERING ... July 09

MUHIBBAH ENGINEERING is bidding for about RM3 bil in projects, both locally and overseas, as it seeks to increase current Book Order of RM4 bil. MD - MAC NGAN BOON said on Jun 22, 2009 that the RM3 bil worth of projects it was eyeing were in the construction sector. " .... It's a mix of both local and overseas jobs. It's hard to say if we will successfully get the jobs, because the environment is far more competitive nowadays .... In good times, we pick up RM1.5 bil out of RM6 bil to RM8 bil tendered. In bad times, we may tender RM3 bil and pick up RM100 million so it's hard to say about the success rate ...." he said after the shareholders on Jun 21, 2009.

" .... With the completion of our L&G marine facility project in Yemen, we are definitely on the radars of major oil companies, their refineries and major oil complexes that are coming up around the world ...." MAC said, adding that " .... more companies were seeking out MUHIBBAH for similar projects following the successful completion of the Yemen project ....".

CURRENT ORDER BOOK OF RM4 BIL
He also said that the current Order Book of RM4 bil comprised of construction, shipyard and cranes projects for local and international markets.

Of the RM4 bil, the construction order book was about RM2.6 bil and the remaining comprised of a shipyard and cranes at RM820m and RM620m respectively.

1QE MAR 2009 RESULTS
Of MUHIBBAH's income of RM381.1m for 1QE Mar 31, 2009, MAC said that 55% was earned locally and the rest from overseas projects. " .... Prior to the economic crisis, our Order Book was 60% foreign and 40% local ...." he said, adding the percentage of jobs was around 40% from local companies and 60% international.

As for 2008, he said it was very difficult as the Group had to contend with high raw and construction materials and scarce plant and equipment for some heavy engineering work until the time of the crisis. ".... Going forward, we see a reversal and this has somewhat helped us in terms of ongoing jobs, and in a way mitigated our rising prices and costs ...." he said.

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Muhibbah Engineering Bhd ... July 09