PETALING JAYA: Cable and wire manufacturer Southern Cable Group Bhd wholly owned subsidiary Southern Cable Sdn Bhd has secured a contract from Tenaga Nasional Bhd (TNB) to supply RM293.8 million worth of underground cables and conductors to the national utility giant.
The contract entails Southern Cable delivering low- and medium-voltage underground cables and conductors to TNB’s Distribution Network Division for one year from July 2022, with the option of a one-year extension. Prior to this, Southern Cable has obtained similar letters of award from TNB since 2019.
Managing director Tung Eng Hai said this largest contract to date brings Southern Cable’s total orders in hand to more than RM800 million, to be progressively fulfilled over the next three years. This will enhance its earnings prospects for the current financial year ending Dec 31, 2022 and onwards.
With the new LOA from TNB, the group’s current orders in hand rise to RM816.3 million, to be fulfilled until 2024. The orders in hand comprise RM466.7 million in order book from long-term contracts, as well as short-term unbilled purchase orders amounting to RM349.6 million.
Close to 90% of Southern Cable’s revenue in 2021 was derived from power cables and wires, which are supplied to utilities providers such as TNB; resellers; engineering, procurement, construction and commissioning contractors, and others.
Apart from manufacturing and supplying power sector cables, Southern Cable also produces and supplies communications cables and wires for the telecommunications sector, and control and instrumentation cables and wires used in manufacturing and processing industries.
“Overall, the recovery in economic activities in Malaysia bodes well for us. We anticipate higher orders from various industries going forward, including telecommunications, and construction & infrastructure, as companies embark on systems upgrades and/or expansions to equip themselves for the next growth phase.
“Our integrated facilities and internationally-certified cables and wires are supported by strong distribution network, which helps us cater to any industry nationwide in a timely manner. We are optimistic of our prospects ahead,” said Tung.
Source: The Sun Daily
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