Friday, July 23, 2010

Tanjong to double power generation capacity

KUALA LUMPUR: Tanjong plc plans to double its power generation capacity from the current 4,000 megawatt (MW) in the next four to five years.

Its chairman, Datuk Robert Cheim, said the group planned to expand its power generation assets in Middle East, North Africa and Asia.

"The Middle East has a huge power generation project with the capacity from 1,000 MW while South-East Asia and North Africa offer capacities from 400 to 500 MW," he said after the AGM on Friday, July 23.

The group's power generation segment spreads across Malaysia, Egypt, Bangladesh, Pakistan, Sri Lanka and the United Arab Emirates with some 13 power plants to date in its portfolio.

"We are looking at projects that are available. Our strategy is merger and acquisitions and also greenfield," he said.

Cheim said the power generation industry has recovered from the global financial crisis, where a lot of projects were delayed.

"Now is the time where there are a lot of greenfield projects," he said.

On whether the group was interested to acquire Mudajaya Bhd, which was also involved in the power sector, he said: "No at the moment."

He said the group's outlook for the coming financial year ending Jan 31, 2011 would likely to be positive.

For the financial year ended Jan 31, 2010, Tanjong's pre-tax profit rose to RM953.3 million from RM748.8 million in the previous corresponding period.

Meanwhile, chief executive officer of Entertaiment Division, Goh Seow Eng, said the group was looking at options to mitigate the impact of the increase in betting tax on its gaming division.

"We are talking to the Ministry of Finance and other operators to mitigate the impact," he told reporters after the AGM.

Goh said the tax increase may cost the group RM15 million for the rest of this year. -- Bernama


No comments:

Post a Comment