Public-listed Pestech (Cambodia) Plc (PCL), a subsidiary of Malaysia’s Pestech International Bhd, and locally-owned Attwood Investment Group Co Ltd on December 13 entered into a memorandum of understanding (MoU) to conduct feasibility studies on the construction or ownership of solar-based assets in Pailin and Preah Sihanouk provinces, according to Pestech International.
The Malaysia-based electrical power technology company said in a December 14 statement that in Pailin, “solar assets would be used to provide electricity to MSP Development Company on a wholesale basis for on-sale to retail customers”, and that the Preah Sihanouk undertaking would involve rooftop solar within the 1.925sq km Steung Hav Special Economic Zone [SEZ], “a greenfield industrial zone currently being developed by AIG”.
“MSP owns a power distribution licence issued by the Electricity Authority of Cambodia, giving it the rights to supply electricity to an estimated 15,000 residential and commercial consumers” in Pailin town and neighbouring Sala Krao district to the north, both in Pailin province, the statement said.
“Under the MoU, the parties shall cooperate jointly to complete the feasibility studies and formulate a licence and approval strategy and embed the requirements of clean energy generation. The objective of the feasibility studies is to offer both competitively priced clean and conventional energy mix to customers while providing potential investors a market-based risk adjusted financial return.
“The MoU between the parties will allow PCL to contribute and strengthen its expertise in renewable energy while being committed to sustainable development.
“The MoU will have no material effect on earnings, revenue and net assets per share of the group for the financial year ending 30 June 2023, but is expected to contribute positively to the future earnings of Pestech Group, if the collaboration between the parties is successful,” it said.
In August 2020, PCL listed 3.945 million shares on the Cambodia Securities Exchange (CSX), or 5.26 per cent of its 74.945 million voting shares, at an offering price of 3,120 riel ($0.76), raising 12.308 billion riel, or approximately $3 million.
PCL’s share price remained flat on Friday, December 16, closing at 3,140 riel for a market capitalisation of 235.327 billion riel and 52-week range of 3,000-3,300 riel, with 757 shares traded.
On the Bursa Malaysia, Pestech International’s share price rose 0.010 ringgit or 2.99 per cent to close at 0.345 ringgit on December 16 for a market capitalisation of 331.09 million ringgit ($74.8 million) and 52-week range of 0.275-0.860 ringgit, with 2.25 million shares traded or 85 per cent of the 65-day average of 2.63 million, according to MarketWatch.
For the quarter ended September 30, the Malaysian firm reported revenues of 130.16 million ringgit, down 1.47 per cent quarter-on-quarter; EBITDA (earnings before interest, taxes, depreciation and amortisation) of 4.81 million ringgit, from a negative 3.39 million ringgit a quarter ago; and net loss of 60.66 million ringgit, expanding by 340.70 per cent on a quarterly basis, the financial news website indicated.