Kinergy Advancement Bhd through its unincorporated joint venture with Sinohydro Corporation (M) Sdn Bhd, has been awarded a RM646.3 million contract for the engineering, procurement, construction, and commissioning (EPCC) of a 120-megawatt (MW) power plant facility in Labuan.
The Letter of Award (LOA), dated May 13, was issued by Rancha Power Sdn Bhd (RPSB), a joint venture comprising PG Energia Sdn Bhd (a wholly-owned subsidiary of Petronas Gas Bhd), Sustainable Power Sdn Bhd (a unit of Sabah Electricity Sdn Bhd), and SEC Power Sdn Bhd (a subsidiary of Sabah Energy Corporation Sdn Bhd).
In a filing with Bursa Malaysia on Monday, KAB confirmed that the project was secured through a competitive bidding process and will be executed by the KABEH-Sinohydro joint venture. The scope of the contract includes full EPCC services for the power plant.
“The award reflects KAB’s growing technical capabilities in managing and delivering large-scale energy infrastructure projects,” the company stated. “It is expected to contribute positively to the group’s future earnings and solidify its standing in the sustainable energy sector.”
Works are slated to commence on May 20 and will remain in effect until full project completion, including the warranty period.
KAB’s share price closed unchanged at 33.5 sen on Monday, maintaining a market capitalisation of RM712.6 million. The stock has declined 2.9% year-to-date.
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