KUALA LUMPUR (May 5): Gamuda Bhd (KL:GAMUDA) said its 45%-owned Upper Padas Power Sdn Bhd (UPPSB) has received a revised approval from the Energy Commission of Sabah for the Ulu Padas Hydroelectric Project, which has now been upgraded into an integrated hydro and floating solar energy project.
Sabah Energy Corporation Sdn Bhd owns a 40% share in UPPSB while Kerjaya Kagum Hitech JV Sdn Bhd holds the remaining 15%.
In a filing with Bursa Malaysia, Gamuda said under the revised plan, the project will combine a 187.5MW hydroelectric plant with an additional 150MWac (megawatts of alternating current) floating solar facility. The hydro component is expected to generate 1,052GWh annually while the solar portion will contribute an additional 300GWh.
“The addition of the 300GWh annual energy yield from the floating solar facility significantly expands the integrated project's total generation base. Consequently, this strengthens the integrated project's viability and enhances Gamuda's previously anticipated income profile from this concession,” it said in the filing.
The project is a single hybrid development, with a 40-year concession for the hydro plant and 25 years for the floating solar plant. Once completed, it is expected to generate over RM450 million in annual revenue.
Gamuda said with major construction underway since 2025, the hydro plant is scheduled for completion by Dec 31, 2030, while the floating solar facility is expected to be completed by Dec 31, 2031. A power purchase agreement is expected to be finalised by end-2026.
The project will be funded through a mix of internally generated funds and borrowings, with a minimum debt-to-equity ratio of 80:20.
The group expects the project to enhance long-term earnings and recurring income while strengthening its renewable energy and ESG portfolio. It is not expected to have any material impact on its share capital or shareholder structure.
The company is trading at a price-to-earnings (PE) ratio of 25.8 times, which is higher than most peers except IJM Corp Bhd (KL:IJM) at 27.5 times.
Its price-to-net asset value (P/NAV) ratio of 2.1 times is lower than most peers.
Gamuda’s share price was down 0.23% or one sen to RM4.42 a share, valuing the company at RM26.3 billion. The stock is down 11.24% year-to-date.