Tgv Cinemas
Business Review
P o w e r G e n e rati o n
During the year, the Group consolidated its position as a major regional power player and put in place measures to fuel future growth. All the Group’s power plants across Malaysia, Egypt, Bangladesh, Pakistan, Sri Lanka and the United Arab Emirates continued to deliver strong operational performance while it undertook cost mitigation and productivity improvement measures. With some 13 power plants to date in its portfolio and a net generating capacity of 3,951 MW and a water desalination capacity of 16 million imperial gallons per day, the Group’s Power Generation segment continues to deliver significant benefits in the way of sustainable earnings and cashflow growth. In the current year, Power Generation revenue increased by 3% from RM2,718 million to RM2,812 million mainly due to improved contributions from the Malaysian and Egyptian power plants. The segment’s operating profit increased by RM202 million or 25% to RM1,006 million as a result of higher revenue, lower plant maintenance expenses, lower corporate and business development costs totalling RM114 million, and the non-recurring windfall profit levy of RM85 million which was charged in previous year. Finance costs for Power Generation reduced from RM507.1 million to RM366.8 million due to the absence of one-time refinancing costs of RM141 million which was incurred in the previous year and the resulting interest savings brought about by the refinancing exercise. With the global economy slowly strengthening, many power 20
TANJONG PUBLIC LIMITED COMPANY annual report & financial statements 2010
projects, which had been held back amidst the preceding year’s financial turbulence are now gradually being opened for bidding. In line with this, the Group has set its sights on doubling its net generating capacity in the next five years through a balance of greenfield developments and M&A activities. Greenfield initiatives will most likely be centred in the Middle East and
P o w e r G e n e rati o n
During the year, the Group consolidated its position as a major regional power player and put in place measures to fuel future growth. All the Group’s power plants across Malaysia, Egypt, Bangladesh, Pakistan, Sri Lanka and the United Arab Emirates continued to deliver strong operational performance while it undertook cost mitigation and productivity improvement measures. With some 13 power plants to date in its portfolio and a net generating capacity of 3,951 MW and a water desalination capacity of 16 million imperial gallons per day, the Group’s Power Generation segment continues to deliver significant benefits in the way of sustainable earnings and cashflow growth. In the current year, Power Generation revenue increased by 3% from RM2,718 million to RM2,812 million mainly due to improved contributions from the Malaysian and Egyptian power plants. The segment’s operating profit increased by RM202 million or 25% to RM1,006 million as a result of higher revenue, lower plant maintenance expenses, lower corporate and business development costs totalling RM114 million, and the non-recurring windfall profit levy of RM85 million which was charged in previous year. Finance costs for Power Generation reduced from RM507.1 million to RM366.8 million due to the absence of one-time refinancing costs of RM141 million which was incurred in the previous year and the resulting interest savings brought about by the refinancing exercise. With the global economy slowly strengthening, many power 20
TANJONG PUBLIC LIMITED COMPANY annual report & financial statements 2010
projects, which had been held back amidst the preceding year’s financial turbulence are now gradually being opened for bidding. In line with this, the Group has set its sights on doubling its net generating capacity in the next five years through a balance of greenfield developments and M&A activities. Greenfield initiatives will most likely be centred in the Middle East and