IEV secures a major CNG supply contract from Kaldu Sari Nabati
Monday, May 25 2015 - 04:02 PM WIB
SGX-listed IEV Holdings Limited announced on Monday that its subsidiary, PT IEV Gas, has been awarded a Gas Sale & Purchase Agreement (GSPA) from PT Kaldu Sari Nabati for the supply of compressed natural gas (CNG) to its manufacturing plant in Rancakekek, West Java for a period of two years.
Pursuant to the award, PT Kaldu Sari Nabati will purchase an aggregate of more than 400,000 million metric British thermal units (mmbtu) for two years, based on a minimum off-take of 80 percent of the total contracted units of CNG. PT Kaldu Sari Nabati, a subsidiary of Nabati Group, is a company engaged in the food and beverage industry. The manufacturing division of PT Kaldu Sari Nabati is located approximately 142 km from PT IEV Gas? CNG processing plant in Cikarang, West Java.
Barring any unforeseen circumstances, revenue from the GSPA, which is estimated to be in excess of US$6 million (assuming the minimum off-take and minimum contract price), is expected to contribute to the group?s financial performance over the two year period from June 2015 to May 2017, and hence is expected to have a positive impact on the net tangible assets per share and earnings per share of the group for the current financial year ending Dec. 31, 2015.
Editing by Johannes Simbolon