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KUALA LUMPUR: Cable and wire manufacturer Southern Cable Group Bhd has secured a RM293.8mil award from Tenaga Nasional Bhd (TNB) to supply underground cables and conductors to the national power utility.

Southern Cable said its wholly-owned subsidiary Southern Cable Sdn Bhd had secured a letter of award from TNB for its largest contract to-date.

The contract entails Southern Cable delivering low and medium-voltage underground cables and conductors to TNB’s distribution network division over a year starting from July 2022, with the option of a one-year extension.

Prior to this, Southern Cable had obtained similar letter of awards from TNB in 2019.

“This largest contract to-date brings Southern Cable’s total orders in hand to RM816.3mil, to be progressively fulfilled over the next three years.

“This will enhance our earnings prospects for the current financial year ending Dec 31, 2022 and onwards,” said managing director Tung Eng Hai in a statement.

“It cements our position as a key supplier to TNB for more than 18 years and counting,” he added.

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The group’s order book comprised RM466.7mil of long-term contracts as well as RM349.6mil of short-term unbilled purchase.

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 TNB; resellers; and engineering, procurement, construction and commissioning contractors.

Apart from manufacturing and supplying power sector cables, Southern Cable also produces and supplies cables and wires for the telecommunications sector, as well as control and instrumentation cables and wires used in the manufacturing and processing industries.

“Overall, the recovery in economic activities in Malaysia bodes well for us.

“We anticipate higher orders from various industries, going forward, including telecommunications as well as construction and infrastructure, as companies embark on systems upgrades or expansions,” said Tung.

He said the group is optimistic about its prospects, noting that its integrated facilities and internationally-certified cables and wires are supported by a strong distribution network, which helps it to cater to any industry nationwide in a timely manner.

Southern Cable shares ended two sen up at 35.5 sen a share, valuing it at RM284mil.