Tadmax Resources Bhd plunged 11.63%, or 2.5 sen to 19 sen, its lowest since May 30. The stock fell 24% in the past month and year-to-date it has fallen 11.63%.
RANHILL HOLDINGS BHD fell 0.73%, or 0.5 sen to 68 sen and its trading volume was 3.9 times the 20-day average. The stock returned a negative 10% so far this year and a loss of 13% in the past 52 weeks.
Last Thursday, the Energy, Green Technology, Science and Climate Change Minister Yeo Bee Yin said the ministry had cancelled four IPP contracts that were awarded under the previous administration,
However, she said none of the four are existing IPP contracts and one involves a listed company,
She said the Government is still in the midst of reviewing other contracts and intends to cancel as many as eight IPP contracts, including the four that have been cancelled.
Currently, the listed IPPs are Malakoff Corp Bhd and YTL POWER INTERNATIONAL BHD. YTL Power shed one sen to RM1.16 while Malakoff rose one sen to 90.5 sen.
Apart from these players, Tadmax was directly awarded a 1,000MW combined-cycle gas turbine plant on its Pulau Indah land in August 2016.
Tadmax lacked a track record in developing power plants and subsequently tied up with South Korea’s state-owned company, Korea Electric Power Corp.
Early this year, Ranhill announced that it had received a conditional letter of offer from the EC to develop a power plant in Sandakan, Sabah, for the development of a 300MW combined-cycle gas turbine plant.
CIMB Research sees risk for power generators, particularly those with expiring power purchase agreement (PPA) or upcoming plants. Power plants with PPAs expiring in the near term might not get an extension due to the excess power reserve, in our view.
“For upcoming generation capacity, we see risk in Tadmax Resources’s 1,000MW power plant project awarded by the Energy Commission (EC) on a direct negotiation basis in 2016,” it said in a report.
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