KUCHING: Reservoir Link Energy Bhd’s (RLEB) 51 per cent-owned subsidiary Founder Energy Sdn Bhd has been awarded a solar energy project with the contract worth RM10.2 million.
The letter of award (LOA) from Atlantic Blue Sdn Bhd is for the turnkey construction and commission of a large-scale solar photovolatic plant of 13MWac in Mukim Apri-Apri, Kuala Selangor district.
Altantic Blue, which is a wholly-owned subsidiary of Solarvest Holdings Bhd, provides engineering, procurement, construction and commissioning (EPCC) services for solar photovoltaic system and investment in solar PV plants.
“The scope of work for the LOA shall include but is not limited to the provision of all necessary preliminaries, construction and installation, testing and commissioning of the earthwork, road and drainage, fencing, infrastructural, civil and structural works, DC mechanical and electrical works, LVAC mechanical and electrical works, MVAC mechanical and electrical works, SPP works, SPP interconnector, SPP interconnection facilities, TNB interconnection facilities and procurement of all materials, consumables and miscellaneous items (save and except for major equipment namely PV modules, inverter, transformer, mounting structure, switchgear,” RLEB said in a filing with Bursa Malaysia.
Founder Energy shall immediately commence the limited portions of works as to be specified by Atlantic Blue.
The company shall immediately commence the full scope of works after receiving notice to proceed from Altantic Blue and to achieve the completion date on Dec 31, 2022.
Meanwhile, RLEB has slipped into the red with group net loss of RM3.32 million for second quarter ended June 30, 2022 (Q22022) from profit of RM3.95 million in Q22021 as revenue fell sharply to RM17.2 million from RM28.5 million previously.
Losses per share was 1.14sen from earnings per share of 1.39sen previously.
The company attributed the 40 per cent drop in revenue in the current quarter under review mainly to the completion of the Mauritania project in October 2021,and delayed activities by clients from both the oil & gas and renewal energy segments.
The losses incurred were due to lower revenue and a fair value loss of other investment of RM2.25 million.
Over a six-month period in 2022 (6m2022), RLEB suffered group net loss of RM6.43 million from profit of RM4.1 million in 6m2021 as revenue fell to RM23.7 million from RM40.4 million previously.
On prospects going forward, RLEB said the group will continue to strengthen its operational excellence to maximise value creation while intensifying its growth and sustainability agenda in Malaysia and internationally.
“The domestic economy is expected to improve further due to reopening and resumption of all economic sectors with stronger domestic demand, continued expansion in external demand and further improvement in the labour market.
“Growth would also benefit from the easing of restrictions, reopening of international borders and implementation of investment projects.
Domestic oil and gas activity level is expected to gradually pick up in the coming quarters with an anticipated pick up in Petronas capital expenditure going forward, local activity levels are also expected to see some recovery,” it added.
Added RLEB: “The group has an encouraging prospect of renewable energy needs and adoption, complemented by a broad attractive investment environment. New renewable power sources will add value across the value chain, unlocking wide-ranging benefits for the nation.”
RLEB said the completion of acquisition of Founder Energy is expected to contribute positively to the group earnings as the former has given a profit guarantee of RM13.8 million for the next 24 months from the completion date.
The company said the group continues to actively participate in tenders for oil & gas and renewal energy projects.
“In addition, the group will implement its business strategies cautiously to sustain its growth in order to deliver a satisfactory performance in the financial year 2022.”
