KKB Engineering secures RM462 million in contracts, strengthens earnings outlook in Malaysia

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KKB Engineering secures RM462 million in contracts

Highlights

KKB Engineering, through OceanMight Sdn Bhd, secured a RM462 million contract from Sarawak Shell for offshore engineering works on the SK408 project, with an implementation period from August 2026 to December 2027.
KKB also received supply orders from Hock Seng Lee Bhd and Bumia Sdn Bhd, scheduled for completion in the fourth quarter of 2026, which are expected to boost the group's earnings and net assets.
KKB Engineering shares rose 5.56% to RM1.14, giving it a market capitalisation of RM330 million, following the securing of new contracts, including four major contracts worth more than RM700 million this year.

This article was translated from the original. Read the original version by our correspondent here.

Contract details and implementation schedule

According to The Edge Malaysia, citing a Bursa Malaysia filing on Monday, KKB said its unit OceanMight Sdn Bhd received a letter of award from Sarawak Shell Bhd for the provision of engineering, procurement and construction works for fixed offshore structures for the SK408 Teja & Populus and Temu & Inai field development projects.

The group also received supply orders from Hock Seng Lee Bhd and Bumia Sdn Bhd. KKB said the Sarawak Shell contract will run from 28 August 2026 to December 2027, while deliveries for the supply orders for the two companies are scheduled to be completed in the fourth quarter of 2026.

KKB expects the contracts and orders to contribute positively to the company's and group's earnings and net assets throughout their duration.

Impact on operations and share performance

The latest awards mark KKB's fourth contract win since the start of the year. Previously, the Sarawak-based steel fabrication and engineering group secured two contracts worth about RM19 million for the supply of pipes and steel poles, in addition to a RM212 million EPC contract from Petronas Carigali Sdn Bhd.

In addition, KKB also secured six additional contracts with a combined value of RM80 million to supply steel pipes, fittings, poles and galvanised structural poles. KKB shares closed six sen higher, or 5.56%, at RM1.14 on Monday, giving the group a market capitalisation of RM330 million.

The 1H2026 dividend payment trend on Bursa Malaysia was the focus of our previous report, as market uncertainty limited capital gain opportunities, making dividend yields more important to investors. We also explained how dividend estimates for the 100 largest companies increased, with financial services remaining the main contributor while the plantation sector recorded more significant growth supported by strong cash flows.

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