TANJONG Public Ltd Co expects contribution from its wholly-owned interest, Powertek Bhd, to increase substantially with the commencement of commercial operations of its 720MW combined cycle gas turbine (CCGT) power plant.
The plant is owned by Powertek's subsidiary, Panglima Power Sdn Bhd.
Panglima completed the conversion of its 460MW open cycle gas turbine power plant (OCGT) into 720MW CCGT during the 2002 financial year and the CCGT power plant started operations on March 31, 2003, Tanjong chairman Datuk Khoo Eng Choo said in the company 2002 annual report .
On April 30, 2003, Powertek became a wholly-owned subsidiary of Tanjong Energy Holdings Sdn Bhd (TEH), a wholly-owned subsidiary of Tanjong when TEH acquired the remaining 1.898 million ordinary shares of Powertek.
On the Panglima power plant, Khoo said it used a Siemens V94.3A (Series F) model, currently one of the most efficient power plants in the industry.
With the the successful completion of Panglima's power plant, Khoo said the group now had a total nominal generating capacity of 1,490 MW, making it the second largest independent power producer in Malaysia.
Khoo also highlighted the gaming business of the group in his report.
Although the earnings contribution from gaming in the coming year is expected to be lower as a result of reduced operating margins, efforts are being made to enhance our competitiveness in this area, he said.
During the financial year, he said turnover for the numbers forecast totalisator business (NFO) increased by 1.7% to RM1.42bil on the back of five additional draws during the year while operating profit increased by RM9mil to RM201mil.
As for the company's property investment business, Khoo said that the company managed to improve its occupancy rates and maintained rental structure mainly due to the exceptional quality of its building and its related facilities.
This was despite an oversupply of office space in the property market, he said.
As at Jan 31, 2003, he said tenancies for a total of 477,786 sq ft or 90.5% of the net lettable area in Menara Maxis had been secured, representing an increase of 5.2% from the previous year.
For the financial year ended Jan 31, 2003, Tanjong reported a higher profit before tax of RM212.622mil compared with RM114.53mil in the previous year. Bernama
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