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KUCHING, Feb 1: KKB Engineering Bhd (KKB) believed that the global health issue in light of the novel coronavirus outbreak will not dampen business sentiment.
The company is optimistic of recording good financial results in the next two years.
KKB executive director Kho Pok Tong is confident that the group will emerge stronger and is on track to report improved financial performance as a result of higher progress billings and works completed from the contract awards in the past few years.
“We are quite positive for this year and for next year, but looking at what the state is doing, we feel that there is a momentum for the local infrastructure construction industry to be able to participate in more developments,” Kho told reporters during the company’s Chinese New Year open house here today.
KKB was awarded a contract worth RM1.28 billion to build a section of the Pan Borneo Highway, from Sungai Arip Bridge to Bintulu Airport junction, together with its joint venture partner WCT Holdings Bhd in 2016.
The project is on-going and progress billings from the work is expected to contribute to the group’s earnings for 2020 and 2021.
The company was also awarded contracts for the supply of water pipes from Kota Samarahan to Sebuyau under the Sarawak Water Supply Grid programme last year.
On top of that, the company’s subsidiary, OceanMight Sdn Bhd has received a Letter of Award from Petronas Carigali Sdn Bhd for the construction of a wellhead platform for an oil and gas development project.
With the contracts at a combined value of a few million ringgit, Kho is positive that the company will be able to sustain its financial results for this year and next year.
On another note, he outlined that the company is working on contingency plans in dealing with the Wuhan virus outbreak. He noted that as a local and regional player in the construction and oil and gas industry, the company has employees in Sarawak as well as in Sabah.
Therefore, the company is taking precautionary measures by minimising the movement of employees and travel during this time, he continued.
Kho disclosed that the group as a whole has approximately 1,100 employees.
Those attending the company’s Chinese New Year open house include Local Government and Housing Minister Datuk Seri Dr Sim Kui Hian, Sarawak Economic Development Corporation (SEDC) chairman Tan Sri Abdul Aziz Husain, Regional Corridor Development Authority (Recoda) chief executive officer Datu Ismawi Ismuni, Cahya Mata Sarawak Bhd managing director Datu Isaac Lugun and KKB executive director Kho Poh Lin. — DayakDaily