Favelle Favco bags RM54m contracts

Written by Jose Barrock
Tuesday, 04 August 2009 22:15

KUALA LUMPUR: Crane maker FAVELLE FAVCO BHD [ FAVCO 0.985 0.000 (0.000%) ] via its units Favelle Favco Cranes (M) Sdn Bhd and Favelle Favco Cranes Pte Ltd has bagged four contracts with a combined value of RM54 million.

In an announcement to the Bursa Malaysia today, Favelle Favco said that three of the four contracts were for the supply of offshore cranes, to Kencana HL Sdn Bhd, Eunsung CONSTRUCTION [ CONSTRUCTION 226.470 -0.330 (-0.146%) Stock Summary
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] Co Ltd and the Afcons-Gunanusa joint venture company. The forth contract is for the supply of a tower crane to Shanghai Machinery Complete Equipment (Group) Corp Ltd.

Favelle Favco said all the cranes are slated for delivery next year. The contracts are expected to positively impact the earnings of the company.

For the first three months of FY2009, Favelle Favco posted a net profit of RM4.9 million on the back of RM114.3 million in revenue. For the similar period a year ago, the company raked in RM4.4 million in net profit from RM128.5 million in sales.

Favelle Favco is 57.3%-owned by MUHIBBAH ENGINEERING (M) BHD [ MUHIBAH 1.490 0.010 (0.676%) ], which specialises in marine engineering and construction. Meanwhile, Pilgrim fund Lembaga Tabung Haji (LTH) also has 6.6% equity in the company.

Favelle Favco closed unchanged at 98.5 sen.