Image: Reuters Berita 24 English - Tenaga Nasional Bhd (TNB ), a Malaysian utility, stated on Wednesday that it planned to accelerate its en...
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| Image: Reuters |
Berita 24 English - Tenaga Nasional Bhd (TNB), a Malaysian utility, stated on Wednesday that it planned to accelerate its energy transformation plans by aiming for capital investment of roughly 20 billion ringgit ($4.48 billion) every year until 2050.
Tenaga's president and chief executive officer, Baharin Din, stated in a statement that the investments will "offer prospects in more than tripling its profits before interest and taxes (EBIT)" by the year 2050.
Tenaga, whose largest stakeholder is Malaysia's sovereign wealth fund Khazanah Nasional, wants to increase its portion of the country's renewable energy market, which it projects would be worth between 65 billion and 80 billion ringgit by the year 2050.
Tenega intends to account for 40 billion ringgit of it through its electricity generation business, TNB Genco.
According to sources familiar with the situation, Reuters reported last week that Tenaga intended to start the procedure for a potential $1 billion IPO of the unit next year.
Tenaga stated on Thursday that it will evaluate the appropriateness and timing of the IPO and expects the listing of TNB Genco to take two to three years to prepare for. In two to three years, analysts had predicted TNB Genco would go public.
In a statement to Reuters, Tenaga stated that "TNB needs to take into account a number of other considerations before deciding on the IPO." We are currently concentrating on enhancing operating performance and completing the Nenggiri hydroelectric facility.
According to Tenaga, TNB Genco plans to reach an EBIT of 2.5 billion ringgit in 2025 and 3.4 billion ringgit in 2030. It also said that the division had an EBIT of 2.4 billion ringgit the previous year.
According to Baharin, Tenaga is also looking at hydropower and gas projects in Southeast Asia with a goal capacity of 800 megawatts by 2050.
With a $7 billion equity investment, its new energy division will aim to increase the capacity of its renewable energy portfolio to 14.3 gigawatts by 2050, according to Baharin.
According to him, Tenaga would also spend 90 million ringgit over the following three years on initiatives to promote the use of electric vehicles (EV) in domestic transportation. He also stated that the business expects to sell 500,000 EVs by 2030, generating 1.25 billion ringgit in income annually.
1 USD = 4.4630 ringgit
