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Koh Brothers unit bags contracts worth S$35.4m in 2015
CATALIST-LISTED engineering solutions provider Koh Brothers Eco Engineering Limited, a subsidiary of Koh Brothers, said on Wednesday that it has secured contracts worth S$35.4 million during the financial year ended Dec 31, 2015.
Of these, the company's Oiltek subsidiaries, namely Oiltek Sdn Bhd and Oiltek Nova Bioenergy Sdn Bhd, and its Singapore division contributed S$23.9 million and S$11.5 million worth of contracts respectively.
As at Nov 30, 2015, Koh Brothers Eco's outstanding orderbook stands at some S$48.8 million.
Of the outstanding orderbook, the Oiltek subsidiaries have about S$31.4 million worth of contracts that cover the Asian countries of Indonesia, Thailand, Philippines, Hong Kong and Pakistan, as well as countries in Central America and Africa. The remaining S$17.4 million outstanding orderbook comes under the Singapore division, which has recently secured a S$8 million maintenance of mechanical and electrical equipment contract for the Public Utilities Board's (PUB) Changi Water Reclamation Plant.
Koh Brothers had said earlier this month that it is injecting its construction arm, Koh Brothers Building & Civil Engineering (Pte) Ltd (KBCE), into Koh Brothers Eco for S$19 million. KB Eco will pay for the acquisition in new shares, which will shore up Koh Brothers' stake in KB Eco from the current 41 per cent to between 70.1 and 72.3 per cent.
This restructuring will allow Koh Brothers Group to focus on property development, building materials as well as leisure and hospitality businesses with plans to expand regionally, while the enlarged KB Eco will become a one-stop engineering solutions company with greater cost efficiencies from shared overheads with KBCE.