ONE-STOP sustainable energy and engineering solutions specialist Kinergy Advancement Bhd (KAB) (formerly Kejuruteraan Asastera Bhd) has been awarded its largest ever engineering, procurement, construction and commissioning (EPCC) from PETRONAS at RM646.32 mil.
This came about after the group’s pivotal energy subsidiary KAB Energy holdings Sdn Bhd secured its third energy infrastructure project win from the national oil corporation through Rancha Power Sdn Bhd to build a 120-megawatt (MW) gas engine generator power plant in Labuan.
According to the letter of award (LOA) dated May 13 from Rancha Power, the said project is slated for completion by 1Q 2028.
Rancha Power is a joint-venture company set up on Dec 31, 2024 by Petronas Gas Bhd, Sabah Electricity Sdn. Bhd (SESB) and SEC Power Sdn Bhd (SEC) to collaboratively develop and manage ownership of the 120MW power plant facility.
With a contract value close to RM650 mil, the project marks KAB’s strategic expansion into East Malaysia’s energy sector with the power plant to be developed within the Rancha-Rancha Industrial Estate.
“This project is expected to contribute to the growth of the group’s income and strengthen its technical expertise in delivering complex energy infrastructure,” envisages KAB in its Bursa Malaysia filing.
“The completion of the project will further reinforce the group’s position in the realm of sustainable energy solutions (SES).”
As it is, Labuan and parts of Sabah have long faced recurring power supply disruptions, impacting local communities and economic activity.
Spanning some nine acres of land adjacent to the Labuan Shipyard, the facility is expected to commence commercial operations by Jan 1, 2028.
This strategic investment positions KAB for continued growth opportunities in East Malaysia given the 120MW gas engine power plant is expected to serve as an economic catalyst for Labuan and its surrounding regions.
By supporting industrial development, attracting new investment and enhancing quality of life for local communities, this project is poised to contribute to long-term regional competitiveness.
The contract is not expected to have any material effect on KAB’s net assets, net assets per share and gearing of the group for the financial year ending Dec 31, 2025.
Instead, it will enable the group to remain committed to pursuing similar high-impact and critical projects that align with national energy policy objectives and promote sustainable regional development.
At the close of today’s (May 19) market trading, KAB was unchanged at 33.5 sen with 4.73 million shares traded, thus valuing the company at RM713 mil. – May 19, 2025
