PT Kencana Energi Lestari Tbk (IDX: KEEN) water-based power generation project Air Putih will operates this year, it said on Wednesday (07/29) - Photo by the Company

JAKARTA (TheInsiderStories)PT Kencana Energi Lestari Tbk (IDX: KEEN) water-based power generation project Air Putih will operates this year, it said on Wednesday (07/29). The new power plant is expected to increase its capacity from 18 megawatts (MW) to 39 MW.

With the operation of the hydropower project, the company is optimistic that it can earn revenues of US$31 million in this year, up 35 percent from the achievement in 2018 worth of $ 23.7 million. Net income is also projected to grow 164 percent to $9.6 million.

According to deputy director of Kencana Energi, Wilson Maknawi, in a virtual public exposure in Jakarta, the company also has a long-term recurring income based on a power purchase agreement with state-owned power producer, PT Perusahaan Listrik Negara (PLN) through its subsidiaries with a term 20-30 years.

This year, the producer has allocated a capital expenditure of $ 30 million for other projects. The company’ finance director, Lestari Giat Widjaja, added that with the operation of Air Putih with a capacity of 21 MW coupled with the Madong solar-based power plant 10 MW of power, the issuer’ total capacity will be 49 MW in this year.

Kencana Energi also has renewable energy-based power generation projects in Sumatra and South Sulawesi. The entire facility is estimated to have a 205 MW production capacity which will be built by its subsidiaries, PT Bangun Tirta Lestari and PT Nagata Dinamika Hidro Madong. The increase in production capacity is projected to contribute to revenue growth of 36 percent.

According to data from the directorate of electricity at the energy and mineral resources (EMR) ministry , from the installed national electricity capacity of 70.9 gigawatt, up to May 2020, 60.6 percent were supplied by PLN. This condition showed that the supply of electricity becomes quite attractive for businesses.

Of the national installed capacity, electricity from renewable energy to date contributes 2,200 MW, far compared to the national installed capacity. The ministry projects that in the next five years the investment costs to boost renewable-based power plants will reach $36.95 billion.

At present, Kencana Energy has operated a hydropower plant in North Sumatra, namely the Pakkat hydropower plant through Energi Sakti Sentosa and a hydropower plant in Bengkulu, which is the Air Putih hydropower plant through Bangun Tirta Lestari.

At the shareholders meeting yesterday, it was agreed that the distribution of dividends would be $0.02 cents per share or a total value of $729,651. The value of the dividend is equivalent to 20 percent of 2019 net income.

Written by Editorial Staff, Email: theinsiderstories@gmail.com