Latest news with #NorthernSolar
The Sun
01-08-2025
- Business
- The Sun
KAB, Northern Solar eye opportunities in renewable energy reforms under 13MP
PETALING JAYA: Renewable energy players Kinergy Advancement Bhd (KAB) and Northern Solar Holdings Bhd have expressed strong support for the government's commitment to enhance the renewable energy landscape under the 13th Malaysia Plan (13MP). Northern Solar managing director SK Lew welcomed the government's efforts to create a more transparent and competitive electricity market in Malaysia. He said initiatives such as the Community Renewable Energy Aggregation Mechanism (Cream), Corporate Renewable Energy Supply Programme (Cress), and investment in Battery Energy Storage Systems reflect a clear commitment to strengthening the country's renewable energy infrastructure. 'Northern Solar is strategically positioned to capitalise on these developments,' Lew told SunBiz. 'We are actively exploring and participating in the Cream and Cress programmes, which are set to broaden market opportunities in the renewable energy sector significantly.' He added that the focus on integrating battery storage solutions aligns with the company's strategic direction, enhancing the value of the solar photovoltaic projects delivered to commercial and industrial clients. 'With our strengthened financial capacity post-listing, technical expertise and robust project pipeline, we are confident in our ability to play an active and meaningful role in advancing Malaysia's energy transition under the National Energy Transition Roadmap (NETR), while delivering long-term sustainable growth and value to our shareholders and stakeholders,' he said. Unveiling the 13MP on Thursday, Prime Minister Datuk Seri Anwar Ibrahim highlighted that the green economy is poised for further expansion, supported by the NETR. Malaysia aims to increase its share of renewable energy from 29% to 35% by 2030. Key initiatives include the development of battery energy storage systems, floating solar-hydro hybrids in Kenyir, and a hydrogen hub in Sarawak. The government is also exploring the potential of nuclear energy as part of its clean energy mix. 'Malaysia must rise as an Asian economy known not just for growth, but for value creation and sustainability,' said Anwar. These efforts align with carbon trading strategies, the National Carbon Market Policy, and investments in waste-to-energy infrastructure. Meanwhile, KAB executive deputy chairman and group managing director Datuk Lai Keng Onn said the government's bold reforms under 13MP – particularly the move towards a transparent electricity market – will better reflect the actual cost of power generation. He noted that this progressive approach will accelerate renewable energy deployment, strengthen carbon reduction efforts, and widen participation through mechanisms such as Cream. 'As 13MP drives attention towards renewable energy acceleration, including the development of mini hydropower, the recently announced Sabah project sets a positive tone for broader adoption. 'This is in line with KAB's growth trajectory. We have received approval from the Sustainable Energy Development Authority under the FiT 2.0 programme for two hydropower facilities, which will deliver a combined 8.04MW of clean energy, supported by a 21-year tariff mechanism. 'This mirrors national strategies and signals our readiness to contribute meaningfully,' Lai said. He added that KAB's recent milestones – including FiT 2.0 approvals, a major RM646 million EPCC contract for a 120MW gas engine power plant, and a multiproject partnership in Perak – underscore the group's continued role in shaping Malaysia's energy landscape. 'As frameworks like 13MP, Cream and the Corporate Green Power Programme take form, KAB remains focused on supporting national sustainability goals through scalable and inclusive energy solutions,' Lai said.
The Sun
26-05-2025
- Business
- The Sun
Northern Solar achieves RM84.9m revenue in Q4 FY25 amid strong solar EPCC demand
KUALA LUMPUR: Northern Solar Holdings Bhd, a leading renewable energy solutions provider, achieved a revenue of RM84.9 million for the fourth quarter (Q4) ended March 31, 2025 (FY25), primarily driven by robust project execution within its core engineering, procurement, construction, and commissioning (EPCC) of solar photovoltaic (PV) systems segment. Northern Solar recorded a full-year net profit of RM14.2 million, after adding back one-off IPO listing expenses of RM2.76 million incurred during the financial year. For Q4 FY25 specifically, the net profit after adding back the IPO expenses was RM3.3 million, broadly stable compared to the preceding quarter's profit of RM3.4 million, demonstrating sustained operational efficiency. Managing director Lew Shoong Kai said the company's FY25 financial results reflect solid operational performance and effective cost management. 'The successful IPO in February 2025 significantly enhanced our balance sheet, giving us a strong foundation to expand into larger-scale solar projects. 'Our strengthened financial position places us in a favourable position to pursue strategic growth opportunities, particularly in the large-scale solar (LSS) segment,' he said. As of March 31, 2025, Northern Solar maintained a healthy unbilled order book of approximately RM70 million, providing clear earnings visibility into the next financial year. Furthermore, the group holds a robust tender book of approximately RM1.8 billion, excluding potential contributions from upcoming large-scale solar projects. This substantial tender pipeline underscores the group's strong growth prospects. Northern Solar's financial standing post-IPO remains robust, reflected in a solid cash balance of RM52.2 million and a low gearing ratio of just 0.15 times. Healthy operating cash flows, amounting to RM7.2 million, generated during FY25 further strengthen the group's financial stability. Looking ahead, the outlook for Malaysia's renewable energy industry remains highly positive, supported by the government's firm commitment under the National Energy Transition Roadmap (NETR) to achieve a 70% renewable energy mix by 2050. Upcoming initiatives, including the Large-Scale Solar schemes (LSS5, LSS5+, and LSS6), are projected to unlock between RM15 billion and RM18 billion in EPCC opportunities within the next two years, providing substantial growth potential for the group. 'With our significantly strengthened balance sheet and enhanced financial resources, Northern Solar is now actively eyeing opportunities in these large-scale initiatives, alongside the Corporate Renewable Energy Support Scheme (CRESS) and Corporate Renewable Energy Agreement Model (Cream). 'We are optimistic about capturing our fair share of these major projects, further enhancing our pipeline and reinforcing our growth trajectory,' he said. Northern Solar also remains focused on expanding its recurring income streams. The group currently operates approximately 5 MW of renewable energy generation assets and aims to triple this capacity in the upcoming financial year. This strategic move is expected to contribute to earnings stability and further strengthen the company's financial profile.
