Muhibbah Engineering (M) Bhd said it has lost the contract to build a supply base whaft at the Bintulu Port in Sarawak.
"The company wishes to announce that Muhibbah Viccana JV has on Jan 17 received a notice from Bintulu Port Authority to terminate the contract," it said in a filing with Bursa Malaysia on Thursday.
Muhibbah, which owns a 51% stake in the joint venture company, won the RM584.84mil contract on April 28, 2017. The project was supposed to be completed by the end of this year.
The company said it is in negotiation and discussion with Bintulu Port Authority over the notice of termination. It expects "a fair compensation" with respect to the termination of the contract.