Potential RM700mil boost for YTL Power, but PPA extension more important

PETALING JAYA: YTL Power International Bhd’s potential RM700mil windfall from Petroliam Nasional Bhd (Petronas) for overpaid gas will boost its cash balance, but is not a strong re-rating catalyst, said analysts.

Kenanga Research said the power purchase agreement (PPA) extension of two YTL Power’s plants was more important, considering the PPA for the Paka plant was expiring this September and the Pasir Gudang plant early next year.