KUALA LUMPUR: Kejuruteraan Asastera Bhd (KAB) is eyeing higher revenue from the sustainable energy solutions (SES) segment once it completed the acquisition of its first mini hydropower plant in North Sumatera, Indonesia.
It said the segment contributed RM6.8 million or 3.9 per cent of KAB’s total revenue for the financial year ended Dec 31, 2021 (FY2021) which increased to 7.6 per cent or RM4 million in the first quarter ended March 31 this year and is anticipated to rise further.
"Prior to acquiring the mini hydro power plant, KAB’s SES segment derived its revenue from various renewable and clean energy projects in Malaysia and Thailand, comprising solar photovoltaic systems, co-generation facility and waste-to-heat recovery systems,” it said in a statement today.
KAB said its wholly-owned subsidiary, KAB Energy Holdings Sdn Bhd, had entered into a share sale agreement with Sarawak Cable Bhd to acquire the entire issued share capital of the latter’s subsidiary, PT Inpola Mitra Elektrindo (PT IME), for RM10,000.
"PT IME had designed, constructed, developed and now owns and operates the Kombih III mini hydro power plant in North Sumatera, Indonesia, which commenced commercial operations in October last year with 11 megawatt installed capacity.,
"Simultaneously, PT IME also began supplying electricity to Indonesia’s state-owned utility company PT Perusahaan Listrik Negara for the 20-year concession period,” it said.
It said PT IME would be released from all liabilities and encumbrances upon full settlement of the purchase consideration and outstanding debt of up to RM75 million as the Kombih III mini hydro power plant concession is expected to generate at least RM270 million revenue for the group over the concession period of 20 years.
Managing director Datuk Lai Keng Onn said with the hydro plan in place, the SES segment’s revenue is set to double in the current financial year ending Dec 31, 2022 compared with FY2021 with the segment currently having an orderbook of RM480.6 million.
"This is in tandem with our mission of providing a cleaner and greener alternative to promote more efficient energy usage in the Southeast Asia region.
"We are gradually strengthening our SES segment to build a formidable recurring income stream for the group to complement our project-based engineering division and lead our transformation into an energy solutions player in the long term,” he said.
In 2019, ASEAN had a 13.9 per cent renewable share of primary energy and a 28.7 per cent share of power capacity and the region is targeting to have 23 per cent share of renewables in total primary energy supply and a 35 per cent share in installed power capacity by 2025. - Bernama