Va Tech Wabag - Muhibbah Engineering bags Rs 1500 crore order

Malaysia's national oil and gas company, Petroliam Nasional Berhad (Petronas), through subsidiary Refinery and Petrochemicals Integrated Development (RAPID) awarded Rs 1500 crore Effluent Treatment plant (ETP) project to the consortium of Va Tech Wabag (VTWL) and Muhibbah Engineering Berhad(ME) in Pengerang, Johor, Malaysia. The share price of VTWL increased on BSE by 7.55 per cent and is trading at Rs 705.55 on intraday basis.

The contract details include to design competition for Refeed and Engineering, procurement, construction and commissioning of ETP for RAPID. According to the VTWL, the project for the company is first integrated ETP in the South East Asia in oil and gas sector. It is expected to be a landmark project reference.The RAPID project consists of a world scale integrated site which includes refining activities and petrochemicals production. The refinery will have a capacity of 3 lakh barrels per day (bpd), and a steam cracker with combined annual production of over 3 million tonnes (mtpa) of ethylene,propylene and C4-C6 olefins products.

The integrated ETP will fulfil the needs of the entire complex which is Petronas' largest greenfield plant. The Pengerang Integrated Complex has six major associated facilities, including Pengerang Co-generation Plant, LNG re-gasification terminal, air separation unit, raw water supply project, liquid bulk terminal and central and shared utilities and facilities. The purpose of the ETP project is to reduce the pollution in the aqueous effluents of the RAPID Complex to below the regulatory discharge limits.

Financially, VTWL' revenue increased by 13.83 per cent to Rs 456.52 crore in Q1FY16 compared to same period in previous fiscal year. The company witnessed an order intake of more than Rs 1000 crore from International geographies during the June 2015 quarter. Its total order book stood at Rs 7631 crore including framework contracts of Rs 1542 crore as of Q1FY16. VTWL is also keen to bag new orders in the range of Rs 3500 crore to 3700 crore in FY16.

Muhibbah Engineering (M) Bhd is in the construction sector, placing strong emphasis on quality and safety in every aspect of operations. The company is renowned for being a leader in Marine Construction. It has various discipline of Engineering Construction, both locally and internationally.

VTWL is in the business of water treatment field. The Company's principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants. Its industrial water group (IWG) offers water management solutions for steel, petrochemicals, fertilizers, oil and gas, and power industry, among others. VTWL's operations business group (OBG) operates and maintains more than 70 water and wastewater treatment plants.