Boustead Projects E&C, the wholly-owned engineering & construction (E&C) subsidiary of Boustead Projects, has been awarded a contract worth $300 million.
The contract is awarded by a Fortune 500 corporation to design and build an integrated manufacturing, logistics and office facility in Singapore.
Thomas Chu, managing director of Boustead Projects says, “We are extremely honoured to be awarded this significant design-and-build contract by a Fortune 500 corporation, which is our largest project on record.”
“This milestone project is also a positive sign that our E&C business is regaining momentum amid an improving pandemic situation. Despite the size of this project, our depth of experience will help us to mitigate risks in relation to the uncertain market conditions that are associated with inflationary pressure and tight labour supply,” he adds.
The project is expected to have a positive material impact on the group’s profitability and earnings per share (EPS) in both the FY2023 and FY2024 ending March 31.
However, it is not expected to have a material impact on the net tangible asset (NTA) value per share for FY2023 and FY2024.
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According to Boustead Projects, the project involves the design-and-build of a manufacturing facility, integrated with a logistics centre, ancillary office and basement carpark. It is slated to be completed in 2024.
The facility is also being built to satisfy the requirements for Green Mark Platinum, the highest eco-sustainable rating for a building under the Building & Construction Authority’s revised Green Mark Certification Scheme 2021.
Shares in Boustead Projects closed flat at 87.5 cents on July 15.
