PETALING JAYA: Pekat Group Bhd has secured three subcontracts worth a combined RM57.18 million for the design, supply, installation and testing of earthing and lightning protection systems for a project in Johor Bahru.
According to a filing with Bursa Malaysia, the contracts were secured by its indirect wholly owned subsidiary, Pekat E & LP Sdn Bhd (PELP), from an unnamed Malaysian contractor.
The three subcontracts comprise RM27.21 million, RM4.64 million and RM25.33 million, respectively. The first was executed on July 6, the second on Aug 3, while the latest RM25.33 million subcontract was executed on Sept 7.
The contractor, which is principally involved in engineering, construction services and investment holding, was not named due to confidentiality obligations.
Under the first subcontract, PELP will supply, deliver and install, as well as test and commission, the earthing and lightning protection system.
The second involves the supply and installation of earthing and lightning protection systems for a substation.
The third and largest subcontract covers the design, supply, installation and testing of earthing and lightning protection services, including earth mats, lightning protection, associated cabling, copper tape, joints, terminations, fixings, accessories and related civil works.
The three subcontracts are expected to contribute positively to Pekat Group’s revenue and earnings for the financial year ending Dec 31, 2026 and until the expiry of the respective contracts.
The first subcontract commenced on July 6 and is expected to be completed by September 2027, while the second and third commenced on March 24 and Jan 30 respectively, with both expected to be completed by February 2027, subject to extensions or variations under their respective terms.
Pekat said the subcontracts are subject to normal operational and execution risks associated with construction works, including cost fluctuations, supply chain constraints, labour and material availability, site conditions, delays, defects, claims and counterparty credit risk.
The group said it would take appropriate measures to mitigate the risks.
