Friday 29 Mar 2024
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KUALA LUMPUR (June 29): Tenaga Nasional Bhd (TNB) today said it and Japan's Mitsui & Co Ltd have received an addendum to the letter of award dated June 3, 2014 for Project 3B in Jimah, Negeri Sembilan from the Energy Commission (EC), informing the two companies that the government has approved the transfer of the entire 70% stake held by 1Malaysia Development Bhd (1MDB) in Jimah East Power Sdn Bhd (JEP) to TNB.

JEP was established by the 1MDB-Mitsui Consortium to undertake the development of the project.

In a filing with Bursa Malaysia today, TNB said the terms and conditions of the award by EC, among others, include the levelised tariff shall be fixed at 26.67 sen per kWh as proposed jointly by TNB and Mitsui, and that the net capacity of the power plant is fixed at 2x1000MW and its efficiency is 39.5% at full load.

JEP will jointly be owned by TNB and Mitsui, with an effective shareholding interest of 70%:30% respectively.

"The scheduled commercial operation dates for Unit No.1 and Unit No. 2 shall respectively be no later than June 15, 2019 and Dec 15, 2019," said TNB.

TNB noted that it and Mitsui have seven days from today to accept the terms of the addendum.

"TNB shall announce to Bursa Malaysia as and when there is further development on this matter," it added.

TNB (fundamental: 1.3; valuation: 1.8) shares closed 6 sen or 0.47% lower at RM12.60 today, with a market capitalisation of RM71.45 billion. 

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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