Market observers are expecting the company to secure a number of transmission jobs in Sarawak including the lucrative 500 kilovolt (kV) backbone power line in Sarawak (transmission package worth RM1bil) from Sarawak Energy Bhd.
Sarawak Cable is poised to secure the 500kV backbone package, which is expected to be awarded by year-end (2013); and the acceleration of the state government's rural electrification scheme (RES) to meet the state's original target of 95% by year-end (2013) (currently at 60%).
After a long delay, the 500kV package is expected to be awarded in 2013, as there was “urgency to meet the needs of power-intensive industries, notably, in the Sarawak Corridor of Renewable Energy”.
The award of the job to Scable is only awaiting state approval and do not foresee any problems, as Sarawak Cable is the biggest transmission engineering, procurement and construction outfit in the state and SEB is a major shareholder of Sarawak Cable.
Apart from the 500kV job, the company is expected to benefit from the RES, as only 60% is completed, and RM400mil worth of jobs is expected to be tendered out in 2013.
Note that Sarawak Cable is the dominant supplier of fabricated steel poles and cables via units Sarwaja and Universal Cable, respectively. Sarawak Cable would get 80% of the RES jobs to be tendered out in 2013.
Sarawak Cable is also eyeing a number of smaller transmission jobs with a potential total value of RM400mil. This includes the Tanjung Manis-Bintulu and Mambong-Kalimantan lines.
Sarawak Cable currently (May 2013) has an order book of RM687mil, with an outstanding amount of RM202mil.
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