Kota Kinabalu: Suria Capital Holdings Berhad announced that shareholders have approved all resolutions tabled at the Group’s Extraordinary General Meeting, marking a significant milestone in SuriaGroup’s strategic growth journey and paving the way for its expansion into the power generation sector.
The EGM approved the proposed joint venture between SCHB Engineering Services Sdn Bhd, a wholly owned subsidiary of SuriaGroup, and NRG Consortium (Sabah) Sdn Bhd to jointly develop a 100MW gas-fired peaking power plant at the Kimanis Industrial Zone, Papar, together with the proposed diversification of the Group’s existing principal activities to include the power business.
The approvals position SuriaGroup to broaden its earnings base through a new source of long-term recurring income while continuing to strengthen its core businesses.
The project will be undertaken through Suria Powergen 1 Sdn Bhd, in which SCHB Engineering will hold a 70% equity interest and NRG the remaining 30%.
The proposed power plant, with an estimated investment value of approximately RM938.6 million, is targeted to commence commercial operations in the fourth quarter of 2028, subject to the fulfilment of the remaining regulatory approvals, financing arrangements and contractual milestones.
The project is targeted to achieve an equity internal rate of return of approximately 9% and, based on current projections, could contribute approximately 3.6 sen per share to SuriaGroup’s earnings once operational and upon reaching its expected earnings potential. This potential contribution is equivalent to approximately 27% of the Group’s FY2025 earnings per share of 13.33 sen, underscoring the project’s potential to contribute meaningfully to SuriaGroup’s future earnings growth.
Chairman Datuk Seri Panglima Abdul Rahman Dahlan described the shareholder approval as an important milestone in the Group’s continued evolution.
“The power generation sector offers a compelling opportunity to build another long- term earnings platform for the Group while contributing to Sabah’s future energy security and economic development.
“This marks the Group’s first project in the power generation sector and represents an important step in our broader ambition to pursue further opportunities in the energy space.
“Together with our established port operations and other businesses, this strategic expansion strengthens our ability to deliver sustainable growth over the long term,” he said.
Group Managing Director Datuk Ahmad Rizal Dahli said the Group will now focus on advancing the project into its next phase of development.
Once operational, the 100MW gas-fired peaking power plant is expected to strengthen grid reliability by providing fast-ramping generation capacity to support Sabah’s growing electricity demand.
