This article first appeared in The Edge Malaysia Weekly on September 22, 2025 - September 28, 2025

POWER utility and energy development group Sarawak Energy Bhd is exploring the possibility of listing its power generation business in what could be one of the largest listings on Bursa Malaysia in recent years, several sources with knowledge of the matter say.

The Kuching-based state-owned company has already reached out to several investment banks, and sources say these include Maybank Investment Bank, RHB Investment Bank, AmInvestment Bank and Affin Hwang Investment Bank.

“They’re talking to bankers on the feasibility of such an exercise, potential valuation, structure … things like that,” one of the sources tells The Edge.

The source believes that a listing exercise would likely only be driven in earnest after Sarawak’s next general election, which many expect to take place next year. The last state polls were held in December 2021.

“The listing could likely happen within the next two years,” says another source.

Sarawak Energy’s core business is in the generation, transmission, distribution and retail of electricity. It generates power by tapping the state’s indigenous resources — hydropower predominantly, but also coal and gas — and is Sarawak’s primary electricity provider, with a customer base of more than 800,000 account holders and a workforce of over 6,300.

Its available capacity across Sarawak is about 5,745mw, the bulk of it from large hydroelectric plants (3,558mw), according to data from its website. It currently has three major hydroelectric plants — at Batang Ai (commissioned in 1985), Bakun (2011) and Murum (2014) — and one at Baleh under construction and expected to be commissioned by the end of 2030.

Sarawak Energy has, since 2016, been exporting power to Indonesia, and aims to do the same in Brunei, Sabah and Singapore. Its website shows that it exports an average of 190mw to 200mw of power to Indonesian national utility Perusahaan Listrik Negara.

According to recent news reports, Sarawak will supply Sabah with 30mw of electricity starting next month.

The company is 38.68% held by Delegateam Sdn Bhd — a wholly-owned subsidiary of the Sarawak government — and 61.32% by Sarawak State Financial Secretary, according to CTOS data as at early September.

In response to The Edge’s query on whether it is mulling a listing for its power generation business, Sarawak Energy points out that Sarawak Premier Tan Sri Abang Johari Tun Openg had, in a recent winding-up speech at the Sarawak Legislative Assembly, stated that Sarawak Energy has been directed to review and restructure its organisational framework.

“This involves separating power generation and distribution, with private sector investment in generation while Sarawak Energy continues its role as the single buyer for electricity distribution in Sarawak.

“The review is intended to ensure the company can fully support Sarawak’s vision of becoming the Battery of Asean and a renewable energy powerhouse, while meeting the state’s targets of 10gw of generation capacity by 2030 and 15gw by 2035. These efforts are central to advancing economic prosperity, environmental sustainability and long-term energy security for Sarawak and the wider region,” Sarawak Energy says in its email response. It adds that it is committed to supporting Sarawak’s growing role in the regional and global energy transition.

Sarawak Energy falls under the regulatory purview of the Ministry of Utility and Telecommunication Sarawak and the Ministry of Energy and Environmental Sustainability Sarawak.

Its revenue has increased every year over the last five years, from RM5.53 billion in the financial year ended Dec 31, 2020 (FY2020) to a record high RM7.3 billion last year. Growth in profit after tax (PAT), however, has not been as constant (see chart).

Sarawak Energy, whose group CEO is Datuk Sharbini Suhaili, recorded a PAT of RM1.34 billion in FY2024. This was lower by a marginal 0.07% than the previous year despite revenue having improved 2.2%, CTOS data shows.

In FY2023, PAT fell 51% year on year to RM1.339 billion, due to higher generation costs — mainly from an increase in power demand — and higher impairment loss, as well as a one-off initial recognition of deferred tax assets. Revenue that year grew 2.6% to RM7.15 billion, helped by higher sales of electricity, the company says in its annual report.

Its highest annual PAT over the last six years was RM2.73 billion, in FY2022.

It remains to be seen how Sarawak Energy’s power generation business will be valued, but industry sources note that it could be at an earnings multiple of more than 20 times, going by the valuation of energy assets in the region.

RAM Rating, in a report on Sarawak Energy last year, observed that the company is actively investing in new generation capacity to achieve the targeted 10gw by 2030 from 6gw currently, given the higher anticipated electricity demand.

“This is expected to almost double its annual capital outlays to around RM4.5 billion. While these sums will mostly be debt-funded, the group’s staggered earnings and higher operating cash flows from more active commissioning and/or increased energy uptake, should provide some headroom for new borrowings,” it says in the Oct 25 report. 

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