PEC secures $250m worth of contracts from existing Middle East, Singapore clients

SINGAPORE - Mainboard-listed PEC Limited said on Tuesday morning (Sept 11) the group has secured $250 million worth of new contracts from existing clients in the Middle East and Singapore.

These include a contract in the Middle East for the provision of engineering, procurement and construction (EPC) works for a crude oil tank terminal with a storage capacity of about 600,000 cubic metres.

By the time the project is completed in 2020, the plant and terminal engineering specialist would have built more than two million cubic metres of storage capacity for storage terminal facilities in the Middle East.

The group has also secured an EPC contract for propylene tankage facilities in Singapore and an EPC gas pipelines project and mechanical works.

Said Robert Dompeling, PEC's group chief executive officer: "The pickup in downstream investments in Asia and the Middle East - from the upgrading of existing infrastructure to the construction of new facilities - presents opportunities for PEC, supported by our strong reputation and proven integrated project and maintenance capabilities. We are well placed to tap on these prospects but will continue to exercise prudence in bidding for new contracts."

PEC said that the new projects are expected to have a positive contribution to the group's earnings for the current financial year ending June 30, 2019.

PEC shares closed down $0.005 or 0.9 per cent at $0.58 on Monday.