Sunday 14 Jul 2024
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For the 2nd ‘Top 10 Energy Sustainability Solutions Providers in APAC 2024’ list by Energy Business Review, Kinergy Advancement Berhad (KAB), Malaysia's leading One-Stop Energy & Engineering Solutions Provider, has secured a notable position. This prestigious accolade recognises KAB's capabilities in providing energy alternatives to assist clients in developing sustainable energy practices. These solutions have been proven to yield cost-saving benefits for businesses, concurrently fostering a positive impact on environment, social and governance (ESG) factors. This establishes the company as a recognised leader in the energy industry.

Decisions Matter, Efforts Count.

The forthcoming special edition of Energy Sustainability by the magazine in May 2024 will feature a full 4-page profile of KAB, providing valuable insights into its latest advancements and developments in the energy business field while achieving an admirable balance between profitability and sustainability. With a reach to over 86,000 qualified subscribers in the APAC region, including key decision-makers such as Renewable Energy Program Heads, Facilities Directors, Energy Directors, and Chief Sustainability Officers, this feature will significantly boost Kinergy Advancement's visibility and validate its capabilities as a holistic provider of innovative sustainable energy solutions. As KAB continues to expand its Sustainable Energy Solutions (SES) portfolio and drive strategic initiatives and investments, this recognition serves as an excellent testament to the company's rapid development and its market presence as a trailblazer in the energy industry.

From Traditional Mechanical & Electrical Engineering Solutions to Innovative Sustainable Energy Powerhouse

Established in 1997, initially as Kejuruteraan Asastera Berhad, KAB has transitioned from its roots of over twenty-six (26) years of experience in mechanical and electrical (M&E) engineering solutions to emerge as a leading force in Sustainable Energy Solutions (SES). Over the years, KAB has demonstrated its dedication not only to its clients but also its core business focus. The company has consistently delivered projects with excellence, maintaining its reputation for high quality work. Most importantly, its resilience in adapting to an ever-evolving market landscape and changing conditions is commendable and worthy of recognition.

One of the primary reasons for its success, marking a pivotal milestone in June 2023, is how the shift in its business focus has enabled it to drive positive changes amidst the global crisis and address the pressing environmental and economy challenges.

In the financial year ending on December 31, 2023 (FY2023), KAB articulated its successful transformation, notably through its rebranding initiative. Complemented by clear objectives to scale, expand, and diversify, the decision to shift its business focus resonates with the Group's visionary endeavour. This includes its adeptness in seizing numerous opportunities and continuously enhancing its capability for business advancement.

Unique Preposition Sets Its Stand in the Industry

Access to Full Article HERE

While terms like "renewable", "clean" and "green" are commonly heard in discussions about energy platforms, there is often controversy surrounding their actual impact and contribution to the energy transition movement. KAB's SES segment addresses all three aspects of these concerns, offering multiple innovative energy solutions that serve as Alternatives to addressing one of clients’ primary concerns – operational expenses. With the continued rise in electricity demand and costs, it becomes increasingly crucial to accept the changing landscape and emphasise the importance of strategic expansion, which could level up KAB's position in this playing field. As a pioneering One-Stop Solutions Provider with a proven track record of success, the company's diverse portfolio includes projects in co-generation, waste heat recovery, solar, biogas, and hydroelectric power. In under 5 years within this segment, KAB has demonstrated its versatility, resilience and expertise in engineering, effectively transferring its technical know-how from the M&E engineering sector into Sustainable Energy.

The most notable development in 2023 is the 52MW gas engine power plant partner project with PETRONAS Gas Berhad (PGB) at the Sipitang Oil & Gas Industrial Park. This project, along with securing RM230.0 million Engineering, Procurement, Construction, and Commissioning (EPCC) contracts marked a monumental progression for KAB. This power plant, as Sabah’s inaugural nearshore natural gas facility and Malaysia's largest gas engine power plant, underscores KAB's advanced technical capabilities in executing complex infrastructure projects.

Furthermore, the PETRONAS LNG Project at Pengerang was awarded to KAB Energy Holdings Sdn. Bhd. (KABEH) by PGB involves expanding utilities and enhancing infrastructure for a Floating Storage Unit (FSU). KAB entrusted with overseeing all project aspects from pre-construction to commissioning.

A Milestone in ESG Excellence and Collaboration with Bursa Malaysia

1 of the 11 new inclusions in 2023

Environmental, social, and governance (ESG) principles haves been recognised with its inclusion in the FTSE4Good Bursa Malaysia Index (F4GBM) and FTSE4Good Bursa Malaysia Shariah Index (F4GBMS) with three-star ratings for 3 consecutive years since 2021. This journey to ESG excellence was accomplished in less than 3 years.

Partnership with Bursa Malaysia to further its sustainability initiatives

KAB's proactive sustainability efforts have caught Bursa Malaysia's attention, aligning with its ESG promotion initiatives. Both are jointly advancing sustainability in the Malaysian capital market.

Exploring Sustainability Mechanisms and Adoption for Application

Recognising the importance of new mechanisms for global and national decarbonisation, KAB actively explored and integrated Renewable Energy Certificates (RECs) and Carbon Credits (CCs). As noted in previous articles, RECs offer a straightforward and cost-effective method for companies to offset carbon emissions generated by their activities and manage mitigation efforts while meeting compliance standards.

KAB has successfully navigating these mechanisms, aligning with Malaysia's National Energy Transition Roadmap (NETR) and the global shift towards sustainable energy practices.

Motives Beyond Financial Gain

In a bid to accelerate efforts to diversify the energy supply mix in Malaysia and the broader Southeast Asian region with an increased supply of clean energy, KAB has enhanced its role in the sustainable energy market by becoming a registered market participant for REC trading. KAB now manages the RECs portfolio for its client, a leading provider of aircraft landing and braking systems. With the recent traction gained by these mechanisms, KAB's initiative extends beyond mere integration and revenue generation. It's commendable for its ability to offering viable options and facilitating their deployment effectively. Ultimately, this contributes to witnessing clients advance in their transition to cleaner and more sustainable energy practices.

On the same note, in the previous article, KAB delved deeper into the utilisation of RECs to support the implementation of hydropower projects, substantiating the discussion with references to its hydro asset and identified hydro project. KAB displayed consistent prudent decision-making and understanding of its strategic growth initiatives. With a focus on keeping pace with Bursa Malaysia's ongoing efforts to enhance climate action, KAB shares a similar goal with the nation to strengthen the integration of hydropower RECs into the portfolio of high-quality carbon attributes. Trusting in the significant potential of hydropower generation of RECs, KAB anticipates improved facilitation of cross-border trading of hydropower RECs.

Established Presence through Excellent Recognition

Being listed by Energy Business Review as 1 of the Top 10 Energy Sustainability Solutions Provider in APAC 2024 is a proud acknowledgment of KAB's presence in the energy industry.

  • Robust Order Book and Strategic Developments

    As of December 31, 2023, the combined order book for KAB's Engineering and SES businesses stood at a robust RM939.0 million, along with pending tenders amounting to a substantial RM3.0 billion.

  • Revenue Growth and Strategic Shift

    With a record-breaking revenue of RM199.4 million, representing a notable increase of 6.6% from the previous financial year's revenue of RM187.0 million. This impressive growth is primarily attributed to KAB's strategic shift towards its SES business. The Group's targeted acquisitions within the renewable energy sector have fueled growth and expanded its market presence, contributing to this revenue surge.

  • Enhanced Gross Profit and Profitability

    The Group's gross profit for FY2023 increased to RM41.4 million, representing a substantial 47.5% growth from FY2022's RM28.1 million. This increase indicates improved operational efficiency and better pricing strategies. The Group's strategic focus on higher-margin SES projects, particularly those generating profits from energy solutions on a concession and recurring basis, has played a pivotal role in enhancing profitability and providing long-term solid high-margin returns.

  • Record-Breaking Profit After Tax

    The Profit After Tax (PAT) for FY2023 soared to a new record of RM28.9 million, marking an exponential growth of more than tenfold from the previous year. This surge in PAT was primarily driven by the impressive growth in the SES segment results, which increased by 862.6% to RM36.1 million.

As KAB continues its journey from a traditional engineering services provider to a leader in SES, the financial results of FY2023 reflect the fruits of this transformative strategy.

CONCLUSION

In conclusion, KAB’s remarkable journey from a traditional engineering services provider to a leading SES powerhouse is a testament to its commitment to innovation, sustainability, and excellence. The recognition as one of the Top 10 Energy Sustainability Solutions Providers in APAC 2024 by Energy Business Review, along with its notable achievements in ESG excellence and strategic partnerships, underscores KAB's pivotal role in driving the energy transition in Malaysia and the broader Southeast Asian region. As KAB continues to expand its SES portfolio and contribute to the diversification of the energy supply mix, its robust order book, revenue growth, and record-breaking profitability highlight the successful execution of its strategic initiatives. KAB's journey is not just about financial gain but about making a positive impact on the environment and society, showcasing the power of sustainable energy solutions in shaping a greener and more sustainable future.

For business inquiries and development opportunities, email: [email protected]

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