Handal Energy Bhd has been awarded a five-year contract to supply crane overhaul, repair, and refurbishment services by ExxonMobil Exploration and Production Malaysia Inc.
This is the company’s second contract with ExxonMobil in three months. On June 24, it announced the award of a five-year contract for crane operation and maintenance.
The latest contract, which runs from October 1, 2021 to September 30, 2026, does not include a fixed value because it is a call-out arrangement in which fees are determined at the time services are provided during the contract’s duration, the integrated oil and gas services provider said in a statement on Monday.
Sunildeep Dhaliwal, the company’s group managing director, said the new contract award by ExxonMobil demonstrates the company’s continued faith in Handal’s services over the last three decades.
“We have been providing maintenance services to ExxonMobil (or ESSO at the time) since 1988, and this is our company’s second contract with them this year. We are thrilled to have been awarded this long-term contract and look forward to enhancing our performance level even further by providing value-added services to them,” he added.
Sunildeep noted that the group returned to profitability in the fiscal year ending June 30, 2021 (FY21), and that this overhaul maintenance service contract contributes significantly to the firm’s earnings.
“We anticipate that this deal will contribute favourably to our profitability from 2022 to 2026,” he continued.
Handal’s shares finished unchanged at 22.5 sen per share on Monday, valuing the company at RM52 million.
Published by Zack Baharum