Hiap Seng to provide plant maintenance services for SRC refinery

HIAP Seng Engineering on Tuesday announced it has been awarded a three-year contract by Singapore Refining Company (SRC) to provide plant maintenance services for the SRC refinery on Jurong Island.

The contract is effective from Jan 1, 2020, to Dec 31, 2022, with an option to extend for another two years subject to mutual agreement.

The total estimated contract value is S$75 million for the period from Jan 1, 2020 to Dec 31, 2024.

SRC is a 50:50 joint-venture oil refinery between Chevron Singapore and Singapore Petroleum Company, a wholly-owned subsidiary of PetroChina International Company.

Hiap Seng said it expects a positive contribution to its earnings from the contract, although it does not expect any material impact on the net tangible assets or earnings per share for the financial year ending March 31, 2020.

The watch-listed company provides mechanical engineering, plant fabrication and installation, and plant maintenance services to the oil and gas, petrochemical and pharmaceutical industries.

Hiap Seng called for a suspension in the trading of its shares in November 2019. Its board was unable to conclude at the time if the group could operate as a going concern.