The stock jumped as much as 19.7% or 24 sen to RM1.46 after the oil and gas services provider announced the contract in an exchange filing today.
The counter pared its gains to close at RM1.42, up 20 sen or 16.4%, giving it a market capitalisation of RM793.7 million. A total of 1.47 million shares were traded.
The contract was awarded by Mexico’s national oil and gas company Petroleos Mexicanos (Pemex) to a consortium led by Coastal Contracts’ 50%-owned joint venture Coastoil Dynamic SA De CV on Dec 19.
The other consortium members are Mexican firms Sistemas Integrales De Compresion SA De CV and Nuvoil SA De CV.
The contract is an expansion of the JV’s role in the Ixachi oil and gas field, currently anchored by the Perdiz and Papan gas processing plants.
Under the agreement, the consortium will deliver an expanded scope of gas processing services and infrastructure works for Pemex.
This includes building a second Papan plant and providing gas sweetening services for an eight-year and 10-month period, valued at RM1.84 billion.
Provision of related permanent infrastructure amounting to RM694 million, a separation plant (RM1.88 billion), and a condensate pipeline (RM229 million) brings the contract’s total value to approximately US$1.14 billion or RM4.64 billion.
The latest contract brings the JV’s total order book to RM7.4 billion, providing strong revenue visibility and earnings sustainability until August 2035, the filing stated.
Coastal Contracts said Pemex’s decision to award the expanded scope contract reflects confidence in the JV’s technical capabilities, execution track record, and long-term commitment to Mexico’s gas processing sector.
Looking ahead, it sees potential for further expansion of gas processing capacity at the Ixachi field.
Coastal Contracts is a global integrated energy infrastructure and marine service provider. It has three business divisions, namely gas processing, vessel chartering and shipbuilding and ship repair.
The company was co-founded by executive chairman Ng Chin Heng, 76, who holds a 6.03% direct stake in the company and a 40.19% indirect interest.