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Mencast Holdings unit inks waste treatment contract worth S$24m

A SUBSIDIARY of mainboard-listed Mencast Holdings has won a three-year contract worth S$24 million, the board announced on Tuesday, in a deal that the directors said "is expected to contribute positively" to the debt-wracked offshore and marine maintenance services provider.

Under the deal, Mencast Offshore & Marine will sell "certain goods and services" from its waste treatment business to an unnamed oil supermajor - that is, a leading firm that stands in the company of oil and gas giants BP, Chevron, ExxonMobil, Royal Dutch Shell and Total.

The contract, which will run from Feb 1, 2020 to Jan 31, 2023, will not have a material impact on Mencast's earnings and net tangible assets per share for the year to Dec 31, the board added.

Mencast shares shed 0.3 Singapore cent or 3.95 per cent to 7.3 Singapore cents before the announcement.