Lafarge shares up despite contract suspension

A view of Lafarge’s Langkawi plant. — Picture by Marc de Faoite
A view of Lafarge’s Langkawi plant. — Picture by Marc de Faoite

KUALA LUMPUR, July 13 — Lafarge Malaysia Bhd's share price on Bursa Malaysia advanced in the early session despite its RM270 million cement supply contract for the proposed East Coast Rail Link (ECRL) project being suspended.

At 9.32am, the stock rose eight sen to RM3.13 with 3,400 shares changing hands.

Yesterday, Lafarge said the project's suspension would not have a significant financial impact on its operations and results in the period up to date.

This is because completed work would be compensated for in accordance with the terms and conditions of the contract, the cement maker said in a filing with Bursa Malaysia.

“However, for the period subsequent to the suspension date, Lafarge will only be able to assess the actual financial impact on the operations and financials of the company on receipt of a clear direction from the client (China Communications Construction (ECRL) Sdn Bhd) and/or Malaysia Rail Link Sdn Bhd after completion of the government’s review of the ECRL project,” the company added. — Bernama

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