04/01/2018 (The Edge Markets MY) - KUALA LUMPUR (Jan 4): CB Industrial Product Holdings Bhd (CBIP) expects positive contribution to its earnings for the current financial year ending Dec 31, 2018 (FY18) and FY19, from a RM61.43 million contract it had entered into with Oriental Holdings Bhd to develop a palm oil mill in Indonesia.

In a filing with Bursa Malaysia, CBIP said its wholly-owned subsidiary PalmitEco Engineering Sdn Bhd signed the contract with Oriental's unit PT Pratama Palm Abadi on Dec 20.

The contract entails the design, manufacture, supply, installation, testing, commissioning and performance guarantee of earth, civil, mechanical and electrical works for a continuous sterilisation palm oil mill in Lubuk Linggau, South Sumatera.

“CBIP does not foresee any exceptional risk, other than normal operational risk associated with the contract,” the group said.

CBIP's share price gained four sen or 2.23% to RM1.83 today, valuing the company at RM961.91 million. Oriental, meanwhile, dipped one sen or 0.15% to RM6.53, for a market capitalisation of RM4.05 billion.