Southern Cable wins RM83.2mil contract from Sarawak Energy

KUALA LUMPUR: Southern Cable Group Bhd's wholly-owned Southern Cable Sdn Bhd has bagged a contract from Sarawak Energy Bhd to provide power cables and conductors worth RM83.2 million.

The contract entails Southern Cable supplying and delivering cables and conductors to Sarawak Energy's distribution network division for a 18 months starting from November 2022. 

Managing director Tung Eng Hai said the sizable contract signified Southern Cable client's confidence in its manufacturing capabilities. 

"We hope this will lead to increased tenders for us, and eventually higher revenue contribution from East Malaysia."

"We are optimistic of our prospects in Sarawak, not just because we have made inroads into the state, but also due to the vast opportunities as the government plans to invest more than RM100 billion in infrastructure and development," he said.

For the first half ended June 30, 2022, Sabah and Sarawak contributed 11 per cent or RM43.5 million of the total RM399.7 million group revenue, improving 70.7 per cent from RM25.5 million in the same period last year, attributed to higher orders from the construction and utility sectors.

With this new win, the company's current orders in hand amount to RM752.9 million, which will improve its earnings for the financial years ending Dec 31, 2022 until 2024. T

The current orders include the RM293.8 million supply contract secured from Tenaga Nasional Bhd in July 2022.

Meanwhile, the company said over the next eight years, Sarawak was expected to invest more than RM100 billion to fund various state projects such as the anticipated H2biscus hydrogen plant, and the development of infrastructures such as roads and bridges, water and electricity supply, and telecommunication network. 

This in turn would lead to higher demand for cables and wires to support the state's expansion plans.

"Our recent appointment as a registered supplier with Sarawak Energy is a recognition of our track record in meeting their quality expectations. 

"This will enable us to take part in larger-size tenders in the future with the state power provider, supporting them in meeting Sarawak's power demands," Tung added.

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