Thursday 28 Mar 2024
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KUALA LUMPUR (May 31): Construction and engineering firm Pasukhas Group Bhd announced that its wholly-owned unit Pasukhas Energy Sdn Bhd has signed a memorandum of understanding (MoU) with PT CHD Power Plant Operation Indonesia to explore a potential energy venture in Indonesia.

Specifically, Pasukhas said it will be having further discussions with PT CHD to explore the feasibility of entering into a joint venture to undertake the development of potential business opportunities in power generation projects in Indonesia.

"The board of directors, having considered all aspects, is of the opinion that the MoU is in the best interest of the company," Pasukhas said in a filing with Bursa Malaysia today.

It is worth noting that PT CHD is a subsidiary of China Huadian Corp, which is one of the five national power producer firms that is wholly-owned by the Chinese Government.

PT CHD's business in Indonesia, said Pasukhas, includes providing technical service and supplying spare parts for power generators in Jakarta.

"PT CHD specialises in the operation of the power plant, which was established by the state-owned electricity giant in China's hydropower project in Lahat," Pasukhas said.

According to Pasukhas, the MoU, which is valid for the next two years, aims to provide the framework of cooperation and for any future binding agreement.

"In the event the MoU results in a definitive agreement between the parties on the potential projects, the implementation thereof is expected to have a positive impact to the company's future earnings," Pasukhas added.

At 3.03pm, Pasukhas shares were trading one sen or 6.45% lower at 14.5 sen, giving it a market capitalisation of RM117.68 million.

 

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