PETALING JAYA: P.A. Resources Bhd has secured a two-year extension of an existing supply agreement from the First Solar group at an approximate value of RM800mil.
In a filing with Bursa Malaysia, the group said the agreement was extended on May 22 and shall commence from May 2021 and will remain effective for two years.
P.A. Resources, through its wholly-owned subsidiary P. A. Extrusion (M) Sdn Bhd, had on Jan 24,2018, entered into an agreement with First Solar Inc, a Delaware corporation; First Solar Vietnam Mfg Co Ltd; and First Solar Malaysia Sdn Bhd for the purpose of mutually beneficial business arrangement.
This involved First Solar purchasing certain materials or other goods from P. A. Extrusion for use in the production of solar photovoltaic modules. The three-year agreement that was inked in 2018 had a contract value of around RM600mil.
P.A Resources said the extension is expected to contribute positively to the group’s earnings and net assets for the current and future financial years.
The group’s share price closed 3.5 sen or 7.61% higher at 49.5 sen yesterday with 29.02 million shares traded.