Southern Cable Group Berhad announced that it has secured an RM90.4 million contract to supply underground cables and conductors to the nation’s utility giant, Tenaga Nasional Berhad.
The new win by the Group’s wholly-owned subsidiary, Southern Cable Sdn. Bhd., follows the addendum contract of more than RM30 million secured in April 2023, which boosts the Group’s total contract value to TNB to RM422.5 million from RM332.1 million earlier. Sales of power cables and wires typically make up more than 80% of the Group’s annual revenue. From the financial years ended 31 December 2020 to 2022, sales of power cables and wires jumped from RM458.4 million to RM749.0 million, reporting a compounded annual growth rate of 27.8% in line with the nation’s ramp up in infrastructure activities in the COVID-19 pandemic recovery phase.
Besides that, Southern Cable sais it is a registered supplier for cables and wires with TNB and has had a strong business relationship for the past 19 years. Apart from TNB, the Group also supplies to other utility providers such as Sabah Electricity Sdn. Bhd. and Sarawak Energy Berhad.
The Group’s current orders in hand amount to RM692.7 million to be fulfilled until 2024. The orders include power cables and wires, and related products and services, such as aluminium rods, and supply and installation of rectifier systems for 5G network.
