KUALA LUMPUR (March 22): Kejuruteraan Asastera Bhd (KAB) has inked five Rooftop Solar Power Generating System Construction and Power Purchase Agreements (PPAs) worth RM46.8 million with an estimated aggregate capacity of 4,284 kilowatt-peak (kWp) in Thailand.

The construction group said the contracted duration was for over 25 years.

In a Bursa Malaysia filing, KAB said the agreement, amongst others, requires KAB to construct, install, operate, and maintain the Grid-Connected Photovoltaic (GCPV) solar system for Siam Machinery and Equipment Co Ltd and four subsidiaries of Aapico Group of Companies (Aapico Ayutthaya).

“KAB has been actively developing a solid base within Thailand’s renewable energy space and the signing of these PPAs has demonstrated our continued foray into Thailand’s renewable energy sector as we remain steadfast to actively replenish the recurring income streams, while at the same time, further solidifying KAB’s footing in the industry.

“Our commitment towards our sustainability framework has bode well for KAB as we advance our sustainability efforts to Be Good and strive to Do Good as a One-Stop Engineering and Energy Solutions Provider,” said KAB managing director, Datuk Lai Keng Onn.

The total savings that the clients could achieve for the projects would be up to 135,433 megawatt throughout the project duration, the group added.

Meanwhile, Lai also highlighted that there are projects in the pipeline that the company is eyeing and is confident of securing them in the near term to boost KAB’s continuity of recurring income stream.

“Our continued dive into greenfield projects and brownfield energy assets are also supported by our capacity of up to RM500 million in war chest post-establishment of the Multi-Currency Islamic Medium-Term Notes programme.

“This will form a strong base to our tender capacity in the renewable energy segment within the Southeast Asia region,” he shared.

As at February 2022, KAB has a combined installed capacity of 12,695 kWp of solar projects, which include 5,073 kWp in Thailand and 7,622 kWp in Malaysia

At noon break on Tuesday (March 22), shares in KAB closed one sen or 2.56% lower to 38 sen, valuing the construction group at RM674.70 million.

Source: TheEdge - 23 Mar 2022