After a long suffering period, KNM investors can be very joyous coming this Christmas celebration with another good news announced today. In a statement after trading hours, KNM announced that its wholly owned subsidiary, KNM Process Systems Sdn Bhd (KNMPS), had landed a RM2.19 billion job in the United Kingdom.
The contract is for the engineering, procurement, construction and commissioning of works towards the development of an 80MWe gross capacity energy from biomass and waste recycling centre project known as EnergyPark Peterborough. Duration of the contract is about 4 years.
This mark another important milestone for KNM to venture into renewable energy sector, which is so popular in this energy-hunting world. This came as a surprise to investor because KNM had never been in that sector, and even surprising us was the multi-billion value contract.
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| Illustration of EnergyPark taken from Peterborough Community Website |
The project was said expected to contribute positively to KNM's earnings for the financial years ending 31st December 2011, 2012, 2013 and 2014. At the same time, KNM order book rose accordingly, which could keep KNM busy for next few years.
Second contract this month
To recap, KNM (through KNMPS also) secured a RM680 million contract early this month in Uzbekistan for the supply of technical documentation, equipment and services for the development of gas condensate fields, which is for a 2 years duration.
KNM closed at RM2.69 today.
OSK and RHB are setting a fair value at RM2.96 and RM3.09 respectively now.
What would be the reviewed price after today?
Merry Christmas, KNM !!!
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