Shares of Va Tech Wabag Ltd were trading 4% higher on 28 May after the company announced securing a contract with Rs 85 crore from Nama Water Services.

In its regulatory filing, the company said, ” The company has secured an order worth around Rs 850 million from Nama Water Services in the Sultanate of Oman towards Operation & Maintenance (O&M) of the Al Duqm Desalination Plant for a period of 5 years.”

The company constructed this 8 million litres day (MLD) desalination plant over a decade ago and was responsible for the O&M of the plant until 2018

The successful bid against global competitors has secured a lengthy O&M contract. This contract involves the operation and maintenance of the entire plant, as well as the seawater intake and outfall systems.

The purpose of this plant is to provide water for residential use in the Duqm and Haima areas of Al Wusta Governorate.

In its quarterly report for January-March, the company reported a net profit of Rs 72.4 crore for the quarter from Rs 111 crore net loss reported in the same quarter last year. The revenue of the company grew marginally by 0.8% to 934.2 crore from Rs 926.9 crore in the year-ago quarter. 

At 2:56 pm, the shares of Va Tech Wabag were trading 0.92% higher at Rs 975.55 on NSE.