KUALA LUMPUR (May 11): Passenger vehicle charterer G Capital Bhd has proposed to diversify into the provision of energy solutions by tapping into its renewable energy assets.

The group, formerly known as Gunung Capital Bhd, has undertaken various measures over the last few years to transform into a more resilient and sustainable business, its executive director Tan Sri Dr Ali Hamsa said in a statement.

"With two strong renewable energy assets on our plate,  mini-hydropower plant through our stake in Perak Hydro Renewable Energy Corp Sdn Bhd (PHREC) and solar projects through our recently completed acquisition in Solarcity Malaysia Sdn Bhd, this will help the group to reduce its reliance on the transportation services sector," he said.

Ali added: "To date, G Capital has 11 active sites with a total estimated installed capacity of 90.15MW. All of these sites have secured feed-in-tariff approval and executed renewable energy power purchase agreements with Tenaga Nasional Bhd. Of the 11 sites, two sites with a total installed capacity of 20MW have commenced operation and generating sustainable recurring income."

G Capital added that energy solutions will become more important to the group's revenue following the diversification and may contribute to about 25% or more of its total net profit.

To spearhead and oversee the expansion of the renewable energy segment, the group said it has formed a project management team, led by Heng Boon Liang and Dzulkifly Abdul Khalid, both of whom have vast experience and credible credentials in the renewable energy sector. Heng is currently the director of Solarcity, while Dzulkifly is a general manager at PHREC.

Aside from the proposed diversification, G Capital has also proposed a long-term incentive plan, which involves the issuance of up to 15% of the group's issued share capital for eligible employees and directors.

G Capital shares closed up 4.5 sen or 5.52% at 86 sen, bringing the group a market capitalisation of RM265 million. The stock saw 4.5 million shares traded.