KNM Holdings Bhd (KNM) wholly owned subsidiary KNM Process Systems Sdn Bhd (KNMPS), has received Letter of Award (LOA) from TAIF-NK to supply a sulphur recovery unit (SRU) for the heavy residue conversion complex located at Nizhnekamsk, Republic of Tatarstan, Russia.
According to the research wing of Kenanga Investment Bank Bhd (Kenanga Research), the contract amounting to US$100 million (RM308.6 million) was estimated to be completed within 28 months.
The research house stated that the contract was KNM’s first material contract win in a long time
“We understand that the design and engineering works could start in second quarter of 2013 (2Q13), as such estimated completion date could be by mid-2015 to 3Q15.
“The contract will lift KNM order backlog to RM4.3 billion. However, we highlight that around 50 per cent of this order backlog is attributable to its long-awaited Peterborough project worth RM2.1 billion,” the research house explained.
The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) concurred that the group’s latest reported order book stood at RM1.9 billion as of 3Q12 (excluding the RM2.1 billion Peterborough project and the RM0.7 billion Orizon project), from RM1.6 billion in 2Q12.
However, MIDF Research added that the current new orders were not keeping pace with its average quarterly burn rate of approximately RM600 million.
The group’s tender book is currently RM19 billion, with a typical management guided success rate of 18 per cent to 20 per cent.
Kenanga Research opined that the company’s FY12 net earnings were expected to be in the black due to its legacy loss-making projects would have been completed within CY12 and the efforts undertaken to improve cost efficiency and productivity.
Some plant capacity rationalisations were expected as certain plants seemed to be suffering from low utilisation and the Peterborough and Octagon projects were currently at status quo.
However, the company had targeted to secure financing for Peterborough soon.
MIDF Research stated the impact on FY13 earnings should be only about seven per cent.
lemon cupcakes
nokia lumia 520
jennifer lawrence
ny yankees logo
preparing garden
10 tumy flattening tips
bleach 527
2014 toyota tundra
antivirus
art investment
ocean thermal energy
No comments:
Post a Comment