Kim Loong in talks to supply biomass energy to Tenaga
New Straits Time, Tuesday, 27 July, 2004
By CHONG IIN HUN
PLANTATION company Kim Loong Resources Bhd may clinch a deal to supply oil palm-based biomass generated renewable energy to Tenaga Nasional Bhd.
Speaking to reporters after the company's annual general meeting in Subang Jaya yesterday, Kim Loong managing director Gooi Seong Lim said the matter is still under discussion.
"We are still negotiating with Tenaga and we expect to finalise the matter this year. We are still working out the value of the project," he said.
Gooi said the company has a 14 megawatt (MW) plant and is capable of supplying 9MW to Tenaga subject to the Energy Commission of Malaysia's approval and the power purchase agreement.
Kim Loong is primarily involved in the oil palm plantation business, with a small fraction of 2 per cent of its revenue from the cultivation of cocoa.
The first quarter ended April 30 saw the company raking in a higher pre-tax profit of RM6.5 million on the back of RM63.2 million in revenue compared with RM2.3 million on RM38.9 million in revenue in the previous corresponding quarter. Net profit improved to RM4.4 million from RM2.4 million.
For its previous fiscal year ended January 31, the company increased its pre-tax profit to RM16.3 million on the back of RM196.1 million in revenue compared with RM13.6 million on the back of RM147.3 million in revenue in the period before. Its net gain added to RM13.6 million from RM9.5 million.
Gooi said Kim Loong's diversification plans will be within the oil palm sector, adding that the group has no plans to deviate from its core business at the moment.
Apart from palm oil milling, the company is also producing biomass and fertilisers from oil palm materials.
. The company, through a newly-acquired subsidiary Palm Nutraceuticals Sdn Bhd also plans to manufacture value-added products from palm oil such as nutraceuticals, food supplements and functional foods.
Gooi said Kim Loong expects to increase its plantation hectarage area by another 8,000ha in a couple of years. The company is looking for suitable land in Johor,southern Pahang and the districts of Sandakan and Keningau in Sabah .
The company has a current landbank of about 12,400ha, of which around 11,600ha are used for oil palm cultivation. Cocoa plantation occupies about 160ha.
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