CABLE and wire manufacturer Southern Cable Group Bhd has reinforced its leadership in the power cable sector after its wholly-owned subsidiary Southern Cable Sdn Bhd secured a letter of award (LOA) from Tenaga Nasional Bhd to supply RM293.8 mil worth of underground cables and conductors to the national utility giant.
The group’s largest contract to-date entails Southern Cable delivering low and medium voltage underground cables and conductors to Tenaga Nasional’s Distribution Network Division over a one-year period from July 2022 with the option of a one-year extension.
Prior to this, Southern Cable had obtained similar LOAs from Tenaga Nasional since 2019.
“The new LOA cements our position as a key supplier to Tenaga Nasional for more than 18 years and counting, and grants us the opportunity to continue supporting the nation’s ever-increasing needs for power infrastructure in line with greater development,” commented Southern Cable’s managing director Tung Eng Hai.
“This largest contract to-date brings Southern Cable’s total orders in hand to RM816.3 mil to be fulfilled until 2024. This will enhance our earnings prospects for the current financial year ending Dec 31, 2022 and beyond.”
The orders in hand comprise RM466.7 mil in order book from long-term contracts as well as short-term unbilled purchase orders amounting to RM349.6 mil.
Close to 90% of Southern Cable’s revenue in 2021 was derived from power cables and wires which are supplied to utilities providers such as Tenaga Nasional, resellers, and engineering, procurement, construction and commissioning (EPCC) contractors, among others.
Apart from manufacturing and supplying power sector cables, Southern Cable also produces and supplies communications cables and wires for the telecommunications sector as well as control and instrumentation cables and wires used in manufacturing and processing industries.
“We anticipate higher orders from various industries going forward, including telecommunications, and construction & infrastructure as companies embark on systems upgrades and/or expansions to equip themselves for the next growth phase,” envisages Tung.
“Our integrated facilities and internationally-certified cables and wires are supported by strong distribution network which helps us cater to any industry nationwide in a timely manner. We are optimistic of our prospects ahead.”
At the close of today’s trading, Southern Cable was 2 sen or 5.97% higher at 35.5 sen with 1.44 million shares traded, thus valuing the company at RM284 mil. – July 18, 2022
