VARIA SECURES SUBSTANTIAL RM555.0 MILLION SEWERAGE TREATMENT PLANT PROJECT IN PENANG

Strategic Contract Win Enhances Varia’s Order Book and Strengthens Commitment to ESG Goals

KUALA LUMPUR, 23 JULY 2024 – Varia Berhad ("Varia" or the "Group"), an experienced player in the field of construction and property development, is pleased to announce that its wholly-owned subsidiary, Pembinaan Teguh Maju Sdn. Bhd. ("PTM"), has accepted a Letter of Award ("LOA") from Best Metro Builder Sdn. Bhd. for a major project known as "Projek Menaiktaraf Loji Rawatan Kumbahan Serantau di Mak Mandin dan Pembinaan Rangkaian Paip Pembetungan Dalam Kawasan Tadahan Butterworth North, Pulau Pinang,” valued at RM555.0 million.

The project involves the design, construction, and completion of a comprehensive sewerage treatment plant, including a network pump station, sewerage network, rationalisation and decommissioning, testing, commissioning, and maintenance works. PTM will provide all necessary labour, plants, materials, equipment, tools, transport, temporary works, and ancillary needs to ensure the successful delivery of the project by March 2029, spanning a duration of 57 months.

With this new contract win, Varia’s total order wins for 2024 have reached an impressive RM653.4 million, significantly bolstering the Group's order book and enhancing its revenue visibility for the coming years.

Datuk Benson Lau, Managing Director of Varia, commented, "Securing this major project in Penang is a testament to Varia’s capabilities and reputation in the construction sector. This project not only strengthens our order book but also aligns with our commitment to environmental, social, and governance (ESG) principles. By upgrading the sewerage treatment infrastructure in Butterworth North, we are playing a crucial role in supporting Malaysia’s sustainable development goals and improving public health and sanitation."

The project is a key component of Penang's efforts to enhance its wastewater management system, which is essential for maintaining environmental integrity and supporting urban growth. This project will help reduce pollution in local waterways, improve the efficiency of wastewater treatment, and contribute to the overall sustainability of the region.

By undertaking such environmentally critical projects, Varia is actively contributing to Malaysia's ESG objectives. The project will employ advanced technologies and practices to ensure minimal environmental impact, reflecting Varia's dedication to sustainable construction and development.

As at 23 July 2024, 12.30 p.m., Varia’s share price is RM0.905 with a market capitalisation of RM377.4 million.