Boustead secures $39M landmark energy contract

Contract from a Fortune 100 corporation is its largest yet in half-a-decade.

In a release, Boustead Singapore Limited said that its Energy-Related Engineering Division won the S$39 million contract, the largest energy contract secured by the division in the past six years, from one of the world’s largest international Engineering, Procurement, Construction, Maintenance (EPCM) corporations.

The contract involves the design, process engineering and construction of key process heater systems to be installed at a large-scale new investment plant in the southern United States for the end-user client, a global Fortune 100 corporation.

“Against strong competition in the US, we were awarded this very important contract, which will further strengthen our reputation around the world as one of the leading quality fired heater experts," said Mr Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead.

Commenting on future prospects, Mr Wong added, “Having already secured over S$80 million in energy contracts since the start of FY2013, we hope to keep up the good pace on negotiations for energy contracts throughout FY2013.”

The addition of the latest contracts puts the Boustead Group’s order book backlog (as at the end of June 2012 plus new orders since then) at S$343 million.

Boustead advises that the latest contract is expected to have a positive material impact on the profitability and earnings per share of Boustead in the current financial year ending 31 March 2013 and following financial year ending 31 March 2014. However, the latest contract is not expected to have a material impact on the net asset value per share of Boustead in either financial year.