KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd's (KPS) 51 per cent subsidiary Aqua-Flo Sdn Bhd (AFSB) today secured a supply contract from Pengurusan Air Selangor Sdn Bhd (Air Selangor) valued at approximately RM91.6 million.
The contract, which AFSB secured via an open tender, will run for 14 months from 1 November 2021 to 31 December 2022 and bears an option for extension upon the request by Air Selangor.
The contract is expected to contribute positively to KPS net assets and earnings starting for financial years ending 31 December 2021 to 2022.
KPS managing director and group chief executive officer Ahmad Fariz Hassan said the company would continue to build on the strong business relationships with Air Selangor, committed to providing long-term solutions and sustainable growth of the water industry.
"The business aspect notwithstanding, winning this contract is instrumental in executing the company's overarching sustainability agenda," he said in a statement today.
AFSB, having established a reputation in the water industry as one of the country's major water chemical companies, will supply, transport, and deliver water chemicals to water treatment locations specified by Air Selangor or its subsidiary and associated companies.
From a commercial perspective, Ahmad said the increasing demand for chemicals by the largest water operator in Malaysia displays Air Selangor's confidence in AFSB's playing an important role in ensuring the sustainability of clean and safe water supply in Selangor.
"This contract builds on AFSB's ambition to steadily grow market share in the potable water business, leveraging on the expected increase in water treatment plant capacity in meeting the rising demand for safe and reliable treated water.
"Before this, AFSB won a two-year contract worth approximately RM162.5 million by Air Selangor from 1 November 2018 until 31 October 2020, which was later extended for another 12 months until 31 October 2021 for an additional RM81.2 million approximately.
"Moving forward, we expect organic growth in AFSB's order book as it continues to strengthen the traction in its chemical sales, as well as increase revenue from the water meter and equipment business segments from the existing and new customers," Ahmad said.
