Wah Seong Corp Bhd ( Financial Dashboard) has bagged a RM188.96 million sub-contract from Penta-Ocean Construction Co Ltd for the supply and delivery of coated steel pipe piles for the Pengerang Deepwater Petroleum Terminal Project in Johor.
In a filing with Bursa Malaysia today, Wah Seong said its subsidiaries namely, PPI Industries Sdn Bhd and Petro-Pipe (Sabah) Sdn Bhd were awarded the sub-contract involves the manufacture and delivery of coated steel pipe piles.
"The risks are the normal operational risks associated with the manufacturing, coating and delivery of steel pipe which is one of the core business of Wah Seong Group. The sub-contract is expected to be completed by the third quarter of 2016," it added.
Wah Seong said the sub-contract is expected to contribute positively to the group's earnings over the sub-contract period.
The sub-contract is project specific and is not renewable, it added.
Wah Seong (fundamental: 0.95; valuation: 3) shares closed unchanged at RM1.22 today with 113,700 shares done, bringing a market capitalisation of RM945.22 million.