Major engineering deals stack up

KUCHING: KKB Engineering Bhd group has secured three contracts and purchase orders worth a combined RM462 million.

Subsidiary OceanMight Sdn Bhd was awarded an engineering, procurement and construction contract by Sarawak Shell Bhd for fixed offshore structures for the SK408 Teja and Pepulut, and Temu and Inai field development projects.

KKB also received purchase orders from Hock Seng Lee Bhd and Bunia Sdn Bhd.

In a Bursa Malaysia filing, the group said the contract runs from Aug 28, 2026 to December 2027, while the supply orders are scheduled for completion in the fourth quarter of this year.

KKB expects the awards to contribute positively to its earnings and net assets over their duration.

It identified skilled manpower and material availability, foreign exchange and pricing movements, weather, and political, economic and regulatory conditions among the execution risks.

Separately, Hartanah Kenyalang Bhd returned to the black in the third quarter ended July 31, 2026, recording a net profit of about RM3 million against a RM1.7 million loss a year earlier.

Revenue surged 93.4 per cent to RM49.5 million from RM25.6 million, driven mainly by the Sarawak Stadium project, which commenced in January.

The building construction services segment recorded revenue of RM41.8 million, nearly three times the RM14.8 million achieved a year earlier. Infrastructure construction services revenue, however, declined to RM7.71 million from RM10.9 million.

Pre tax profit stood at RM4.2 million compared with a RM1.74 million loss previously, despite higher staff costs and legal and professional fees.

For the nine month period, Hartanah’s revenue increased to RM117.9 million from RM100.5 million, while net profit rose to RM5.74 million from RM1.52 million.

The group said its prospects remained favourable, underpinned by Sarawak’s construction outlook and increased emphasis on renewable energy and water infrastructure.

Hartanah Construction Sdn Bhd secured the Wisma JKR Sarawak project on July 9, its largest contract by value to date, after winning its first design and build contract in January for a new 1,000 inmate prison in Sibu.

The group has also entered West Malaysia through Hartanah Kenariu Sdn Bhd, which secured a project to construct three four storey factory units.

Hartanah plans to expand further into utilities construction, including electrical substations, water treatment plants and water pipe laying.