PEC secures S$103m in new contracts

MAINBOARD-listed PEC has secured S$103 million in new contracts with existing clients, it announced on Wednesday after market close.

Two of these are for engineering, procurement and construction of two storage facilities in Singapore and Malaysia, with both expected to be completed within 20 months. A third contract is for the provision of mechanical and civil works for an upgrading project in East Malaysia.

PEC group chief executive officer Robert Dompeling said: "Investments in refining and petrochemical projects are expected to come onstream in Asia and the Middle East in the next five years. While we are cautiously optimistic about the near-term outlook, we will continue to exercise prudence in our bidding, focusing on key Asia and Middle East markets and on enhancing our capabilities."

PEC said that barring unforeseen circumstances, the latest contracts are expected to contribute positively to its earnings for the financial year ending June 30, 2019.

PEC shares closed down one Singapore cent or 1.61 per cent at 61 Singapore cents on Wednesday before the announcement.