Benalec unit secures TNB fuel coal transport contract
KUALA LUMPUR: Benalec Holdings Bhd said its wholly-owned unit, Benalec Sdn Bhd, has accepted a letter of acceptance (LoA) from TNB Fuel Services Sdn Bhd for a contract involving the transportation of bulk coal.
In a filing with Bursa Malaysia on Tuesday, the marine construction firm said the LoA was formally accepted on the same day.
"The contract duration is for a principal period of two years, commencing June 6, 2025 and ending June 5, 2027, with an option to extend for one year upon mutual agreement," it said.
Under the agreement, Benalec will transport 3.5 million metric tonnes of coal annually during the initial contract period, with TNB Fuel retaining the right to increase the volume by up to 20 per cent.
Freight rates under the contract will range from US$4.84 to US$88.75 per metric tonne, with payments made in ringgit based on the exchange rate quoted by Bank Negara Malaysia.
Benalec said the contract will not affect its share capital or shareholding structure.
"The contract is expected to contribute positively to the company's earnings and net assets for the financial year ending Dec 31, 2025 and subsequently until its completion," it said.
It added that no significant risks are anticipated, though the company will continue to monitor and manage any potential risks throughout the project's duration.
"The board of directors, having considered all aspects of the contract, is of the view that it is in the best interest of the company," Benalec said.
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