Hyflux clinches $333m Oman construction project

But the deal provides limited upside.

Mainboard-listed Hyflux has received a letter of award (LOA) to design, build, own and operate an independent water project (IWP) in Qurayyat, Oman, for an estimated $333m (US$250m).

The EPC portion of the project is worth about $280.5m (US$210m), while the O&M bit is worth about $53m (US$40m). However, Hyflux noted that the award is still contingent upon satisfying certain conditions precedent and will not have a material impact on its FY14 results.

OCBC notes that the bulk of the contract value is likely to be recognized in FY16. “Although share price has recovered 19% from a recent intra-day low of S$0.71, we see limited upside from here, given a likely slow 4Q14 showing (and possibly even 1Q15),” stated OCBC.