KUALA LUMPUR: Kumpulan Powernet Bhd (KPower) is confident of achieving strong earnings for its current financial year ending June 30,2021, supported by its solid first quarter performance and bright outlook for the regional renewable energy sector.
Given the strong start to the year, group managing director Mustakim Mat Nun (pic) said the company is optimistic of achieving its order book target of RM2bil by year-end.
“The Asean region recently increased the renewable energy’s installed capacity target from 25% to 35% by 2025.
“We are bidding for projects worth RM4.21bil. In terms of order book, our current secured projects stand at RM1.4bil and the outstanding is RM1.2bil, ” he told reporters during a virtual press conference following KPower’s AGM yesterday.
According to Mustakim, KPower is bidding for projects in the Middle East (RM1.35bil) Indonesia (RM1.16bil), Malaysia (RM1.03bi), Laos (RM44mil) and Nepal (RM600mil).
“There are many projects coming in until the end of our current financial year, ” he said.
KPower’s net profit jumped eight-fold to RM8.15mil in its first quarter ended Sept 30, compared with RM948,000 in the previous corresponding period, boosted mainly by its construction-related activities.
“Following our encouraging first quarter earnings, it’s an indication that our cumulative earnings for 2021 will be strong, ” said Mustakim.
“We are confident and we are in the right industry now. There is already an indication that there will be growth for this sector in the region and it will be reflected in our 2021 results.”
Separately, Mustakim said a sizable portion of its 2021 capital expenditure (capex) would potentially go to the Large Scale Solar power plant (LSS4) project that it is bidding for.“We anticipate it will be more on the LSS4 project that we are tendering. In the event that we can secure that project, our capex will be between RM50mil and RM70mil from the total project cost.”
Separately, KPower said its wholly-owned subsidiary, KPower Engineering Sdn Bhd, had been awarded a contract worth RM296mil from Kangsar Hidro Sdn Bhd, to undertake among others, the engineering, procurement, construction, commission and completion of a mini hydro power plant with total capacity of 27.3MW in Sungai Singor, Perak.
Kangsar Hidro is a joint venture entity between Yayasan Perak, a state agency under Perak and Kangsar Capital Sdn Bhd, which was established to undertake the development of this project.
KPower said in a statement that the scope of work under this appointment includes the preliminary study, engineering, construction, supervision, testing, commission, reliability test, remedy of defect during the defect liability period and provision of all equipment, both permanent works and temporary works in connection with the project.“The relevant parties will enter into a definitive agreement within 60 business days from the date of acceptance of the awards with the expected date of completion to be within 48 months from the commencement date or Dec 24,2024, whichever is earlier.”