It has accepted a contract from Penang Port Sdn Bhd for the design, assembly and delivery of eight cranes for about RM56 million. The rail mounted gantry cranes would be delivered over 26 months.
The contract is expected to contribute positively to the earnings and net assets of Muhibbah group for the current and future financial years.
The outlook for Muhibbah “is bright provided Muhibbah can collect its receivables from Asian Petroleum Hub otherwise provisions would have to be made for doubtful debts”.
Excluding the Penang Port contract, Muhibbah had RM2.53 billion order book remaining as at June 30, 2010 made up of RM1.6 billion in infrastructure, RM450 million in cranes and RM484 million in ships.
Muhibbah continued to be active in bidding for projects and just won a RM124.4m contract to construct an offshore marine centre in Tuas, Singapore.
Rerating catalyst for the stock is the payment of its outstanding receivables.
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