Faber loses foreign contracts worth RM184 million

KUALA LUMPUR: Faber Group Bhd (Faber) has lost contracts worth about RM184 million in Abu Dhabi after the Department of Municipal Affairs, Western Region Municipality (WRM), Emirate of Abu Dhabi opted not to renew the contracts.

The contracts were for the provisions of civil, mechanical and electrical services for low cost houses at Madinat Zayed and Liwa, and the improvement, development, upgrading and maintenance of infrastructure facilities and projects at Madinat Zayed — Zone-1, it said in a Bursa announcement on Wednesday, Jan 12.

The contracts for civil, mechanical and electrical services will end on April 3, while the improvement, development, upgrading and maintenance of infrastructure facilities and projects will end on June 1.

The civil, mechanical and electrical services contracts have an estimated annual total contract price of RM27.5 million each, while the improvement, development, upgrading and maintenance contract is valued at RM129 million per annum.

Faber will redeploy its staff and assets that are presently assigned to the projects and will continue to maintain its office in the region for other potential contracts.

It expects the non-renewal of the contracts to have an effect on its earnings and the net assets per share of approximately RM0.04 sen for the financial year ending Dec 31.