KUALA LUMPUR (Aug 18): West River Bhd (KL:WESTRVR) has won approval for two small hydropower projects in Perak under the feed-in-tariff programme.

The projects within the forest reserves of Bukit Kinta and Bukit Tapah are expected to begin in August 2031, according to an exchange filing. Details on the project, such as capacity and costs, were not disclosed by the company that mainly provides mechanical and electrical engineering services.

Neutron Power Sdn Bhd, its indirect wholly-owned subsidiary, was successful with its applications for two projects with combined capacity of 11.75 megawatts, according to a notice on the Sustainable Energy Development Authority’s website.

“The approval represents another milestone in West River’s expansion into the renewable energy sector, building on the group’s strategy to develop a more diversified and sustainable earnings base through participation in hydropower projects,” the company said.

On Aug 11, the government announced that it has approved 42 renewable energy projects that are expected to attract investments totalling RM4.3 billion under the latest bidding round. The combined generation capacity is 331MW from biogas, biomass and small hydropower.

The programme guarantees renewable energy projects’ access to the grid, with electricity generated sold at a fixed, premium price for a set period. Part of Malaysians’ electricity bills fund such projects meant to speed up technology development to bring down costs and increase adoption.

“West River views hydropower as a strategic long-term growth area, given its role as a reliable source of renewable energy and its potential to contribute towards Malaysia’s transition to a lower-carbon energy mix,” the company noted.

Separately, West River posted a net profit of RM2.4 million for the second quarter ended June 30, 2026 (2QFY2026), more than double the RM1.03 million recorded a year earlier.

Revenue rose 52.7% year-on-year to RM39.4 million from RM25.8 million, driven mainly by its electrical engineering and air-conditioning and mechanical ventilation (ACMV) services segment.

For the cumulative six-month period ended June 30, 2026 (1HFY2026), net profit climbed 81.6% to RM4.63 million from RM2.55 million, while revenue rose 56% to RM79.1 million from RM50.7 million.

“We remain focused on disciplined project execution, cost efficiency and strengthening our business development capabilities as we seek to capture further opportunities within Malaysia’s M&E engineering sector,” West River managing director Lim Yong Lai said in a statement.

The company said it would also continue to manage external challenges, including fluctuations in material costs and supply chain disruptions, through supplier diversification and bulk procurement.

West River shares rose three sen, or 8.5%, to settle at 38.5 sen on Tuesday, giving the company a market capitalisation of RM137.7 million.