You are here
Tee Intl unit receives S$72m letter of award for sports centre in Punggol
TEE International unit Trans Equatorial Engineering has received a letter of award worth about S$72 million from repeat client Hyundai-Keong Hong JV Limited Partnership, a joint venture between Hyundai Engineering & Construction Singapore Branch and Keong Hong Holdings unit Keong Hong Construction.
The letter of award is for mechanical and engineering (M&E) works for the proposed development of a sports and recreation centre in Punggol, the mainboard-listed engineering and infrastructure group said in a statement on Monday after the market close.
The M&E works are expected to be completed by the first quarter of 2023, "barring unforeseen circumstances like project delays due to the Covid-19 pandemic", said Tee International.
The S$72 million order was included in the group's outstanding order book of S$298 million as at Feb 29.
Said interim group chief executive Eric Phua: "With the increasing challenges imposed by the Covid-19 pandemic, Tee will continue to work closely with our clients and partners for the smooth execution and delivery of this project, in accordance to the authorities' guidelines."
The group has been affected by the current circuit-breaker measures in place from April 7 till May 4; most construction works for ongoing projects having been suspended, with the exception of three projects that have been given approval to continue.
This has resulted in significant disruptions to the group's business and operations, and "will have an adverse impact on its profitability" for the financial year ended May 31, 2020, said Tee International.
For the three construction projects that have not been suspended, only essential services are being carried out, so the current workforce - including the subcontractors - has been cut to 30 per cent of what it was previously at those sites, said Mr Phua. The recent stay-home notice for all foreign workers has thus a minimal impact on the company, he added.
The letter of award is not expected to have any material impact on the group's earnings or the net tangible assets for the current financial year ending May 31.
Tee International shares closed up 0.1 Singapore cent or 4.35 per cent at 2.4 Singapore cents on Monday before the news.