T7 Global Bags RM500 Mln Works Contract From Exxonmobil Exploration
KUALA LUMPUR, Nov 6 (Bernama) -- T7 Global Bhd has been awarded a maintenance, construction, modification (MCM) contract and hook-up commissioning services contract for Package B2 - Guntong by ExxonMobil Exploration and Production Malaysia Inc worth RM500 million.
According to a research note by Phillip Research Sdn Bhd, the contract has a five-year duration, with an extension option of an additional three plus two years, effective Dec 1, 2024.
“With overall MCM service rates increasing by a cumulative 20 per cent, the net profit margin for this contract is expected to be higher than the previous MCM contract.
“Assuming a net profit margin of nine per cent, the estimated contract value of RM500 million is projected to generate RM9 million in profit after tax annually over 2025–2029, representing 18 per cent of our existing 2025 estimated earnings forecast,” it said in a research note today.
The research house said that with the contract win, T7 Global’s total outstanding order book is estimated to be at RM3.1 billion.
“The contract reinforces our positive view on the company’s earnings prospects, supported by its sizeable order book with long-term earnings visibility,” it added.
-- BERNAMA