PEC wins S$132m refinery deal in the Middle East

Singapore

MAINBOARD-listed PEC Ltd, a plant and terminal engineering specialist, on Wednesday announced a S$132 million contract award for a refinery project in the Middle East.

The contract was awarded by a leading multinational corporation (MNC) client, PEC said. It will require the group to take up an extensive fast-track project scheduled to be completed by April 2016.

Under the contract, the group will provide engineering, procurement and construction (EPC) works to build large crude and fuel oil tanks for a leading refinery in the United Arab Emirates.

The project will include all related infrastructure needed to enable the client's existing refinery to enhance its crude oil processing capacity, as well as on-site and off-site works which will be carried out to integrate the new storage facility with the refinery's current processing units.

Group CEO Robert Dompeling said: "Winning this contract will further boost our standing in the Middle East and advance our efforts to expand our customer base there."

The contract is expected to have a positive impact on the group's earnings for the fiscal year ending June 2015.

In its first quarter ended Sept 30, 2014, it reported a 14 per cent drop in net profit to S$2.1 million, mainly due to lower variation works claims in Q1 FY15 from a year ago. Revenue edged up 4 per cent to S$110.8 million.

PEC's counter added 1.5 Singapore cents, or 3.5 per cent, to close at S$0.445 on Wednesday.