PEC adds S$64m in contracts to orderbook

Latest wins include mechanical construction works.

In a release, PEC Ltd. (PEC) announced that it has added another S$64 million worth of project works contracts to its orderbook.

The Group said the new wins show its concerted efforts to extend its client base and tap new opportunities in the sector, which have enabled it to post a "significant increase" in contract awards in the second half of the current financial year.

Mr Robert Dompeling, PEC’s Chief Executive Officer, said: “The Group has seen an increased momentum in terms of new order wins, despite the competitive operating environment. These contracts underscore our established relationship with clients as well as our commitment to strengthening our orderbook.

“The latest wins include a major order from a new client in Malaysia and a significant contract from a long-time repeat customer, an oil major who has substantial investments in Singapore.”

Through its 70%-owned subsidiary, PEC (Malaysia) Sdn Bhd, the Group was awarded a contract by one of the world’s gas and engineering groups, to provide mechanical construction works for a mid-scale process plant located within an integrated world-class LNG complex in Sarawak, East Malaysia. This project will commence in May 2013 and is expected to be completed in December 2014.

PEC has also won a contract from one its MNC clients, a global group of energy and petrochemical companies, to provide piping, and steel structure fabrication and installation for a petrochemical plant on Jurong Island, Singapore. Commencing in June 2013, the project is slated for completion by July 2014.

Mr Dompeling added: “The Group has been able to capitalise on its well-established reputation and network in Malaysia. With rising investments in the oil, gas and energy sector, we are in a good position to exploit upcoming opportunities and participate in new tenders.”

In addition, the Group has secured three other contracts through its 100%-owned subsidiary, Audex Pte Ltd. One involves an EPC for the removal and installation of a pipeline while the other two deals cover the provision of compressor and utility lines for gas plants in Singapore.

The contracts are not expected to contribute to the Group’s earnings for the financial year ending 30 June 2013.