MESC Ras Al Khaimah inks SAR 225M supply contract

Middle East Specialized Cables Co.'s (MESC) UAE-based subsidiary MESC Ras Al Khaimah signed on June 19 a final contract with an Emirati joint venture (JV), comprising National Petroleum Construction Co. (NPCC) and Saipem S.p.A., for the supply of various products worth $60 million (SAR 225 million).

In a statement to Tadawul, the company pointed out that the expected contract duration is 18 months, based on the JV’s supply schedule, noting that it is difficult to determine the contract value accurately because the contract is not exclusive for MESC. Accordingly, the revenue and net income will be recognized depending on the supply schedules to be received from the JV.

Several conditions and provisions regulating the supply process and volumes are entailed in the agreement, the statement added, noting that the JV has the right to appoint other suppliers for the same contract value.

The financial impact along with any material developments will be announced in due course, MESC noted, pointing out that there are no related parties to the deal.