A keybeneficiary of the rising interest in RE projects is PUC Founder (MSC) Bhd. However,
even as the company seeks to expand its footprint in the segment, it
has to contend with increasing competition as others jump on the
bandwagon.
It
will continue to explore more RE business opportunities following
its ICULS rights issue which raised more than RM40 mil in the first
quarter 2016.
Besides
government incentives, the advancement of RE technology has also
improved energy production. This, in turn, increased the RE producers’
revenue and profit.
It
had hired a consultant to study the power grid in the proposed location
of an ecotype biogas electricity plant to be developed with PW
Consolidated Bhd. The MoU for the plant’s development was inked between
PW Consolidated and PUC Founder’s subsidiary Founder Energy Sdn Bhd, in
August 2015.
PUC
Founder is principally engaged in three business segments – media and
advertising, E-payment services and RE, its recurring income business.
PUC Founder says the business remains sustainable despite rates from SEDA’s feed-in tariff (FiT) system having been lowered.
In
March 2015, its wholly-owned subsidiary MaxGreen Energy Sdn Bhd was made
a FiT approval holder by SEDA to develop and operate a 1MW solar
photovoltaic plant, which was set up in Sungai Petani, Kedah.
Since
then, the company has proposed another 50MW solar plant and signed a
MoU with PWF Consolidated Bhd to explore biogas energy production.
It
has also formed a joint venture with Greentech Malaysia Alliances Sdn
Bhd to bid for renewable energy projects by the government or
government-linked corporations.
However,
not all has been plain sailing for PUC Founder. The company signed a
term sheet agreement with Green Forever Energy Sdn Bhd (GFE) in February
2016 to subscribe for three million redeemable convertible preference
shares for RM3 mil. However, it terminated the agreement after GFE
failed to get approval from SEDA for the FiT application in respect of
its proposed 425kWphotovoltaic power plant.
PUC
Founder posted a net profit of RM313,000 for the first quarter ended
March 31. This is lower than the RM1.2 mil it posted a year ago. The
company attributed this to lower contributions from its advertising and
media segment as well as non-recurring expenses of some RM900,000 in
relation to the issuance of ICULS. Its revenue also dipped slightly to
RM8 mil from RM8.7 mil previously.
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