KUALA LUMPUR (June 10): Benalec Holdings Bhd (KL:BENALEC) said it has secured a job to transport coal for TNB Fuel Services Sdn Bhd for an undisclosed contract value.
Freight rates for the contract range between US$4.84 (RM20.50) and US$88.75 per tonne, depending on the voyages from the designated loading ports to the discharge ports, according to an exchange filing. Payments will be settled in ringgit.
The contract of affreightment commenced on June 6 and will run for two years. Under the terms of the contract, Benalec will transport up to 3.5 million tonnes of coal per year, with a 20% variation option at the charterer’s discretion.
TNB Fuel Services, a subsidiary of Tenaga Nasional Bhd (KL:TENAGA), transports and supplies coal to power plants in Malaysia operating under power purchase agreements with Tenaga Nasional, where coal cost serves as a pass-through element, according to its website.
Benalec previously handled the affreightment contract for coal shipments for TNB Fuel Services from 2019 until 2021.
In FY2021, Benelec’s vessel chartering and marine transportation operations generated RM41.7 million in revenue, primarily attributed to the affreightment contract for TNB Fuel Services.
However, it was not awarded the contract from 2022 to 2024.
Benalec returned to the black in FY2024 with a net profit of RM12.8 million after seven consecutive years of losses driven by higher land disposal recognition and increased land reclamation revenue. Revenue more than tripled to RM91.33 million.
Shares of Benalec were up 0.5 sen or 6.3% at 8.5 sen, valuing the group at RM87.69 million ahead of the contract announcement. Year-to-date, the stock has fallen 26.1%.