October 22, 2024 [Oil Price]- Malaysia’s Petronas is reportedly looking for buyers of a minority stake in its alternative energy subsidiary Gentari Sdn to help expand the business.
The value of the deal could be between $300 million and $500 million, according to unnamed sources who spoke to Bloomberg. However, sale discussions are preliminary and the price tag is far from final—if the sale takes place at all.
Malaysia’s state energy major set up Gentari two years ago with the state goal of delivering “a suite of renewable energy, hydrogen and green mobility solutions.” Some of its targets include building between 30 and 40 GW of wind and solar capacity by 2030 and entering hydrogen and EVs. Per Bloomberg, as of June this year, the company had installed wind and solar capacity of 2.4 GW, with another 1.2 GW in the works.
In September, Petronas reported an increase in revenues for the first half of the year but lower profits, pressured by cheaper natural gas and a bigger tax bill. The company’s chief executive also highlighted weak economic growth globally as one factor contributing to sub-optimal performance figures.
Looking ahead, Petronas said that “the prolonged geopolitical tensions and macroeconomic uncertainties remain the key drivers of heightened volatility that continue to negatively impact the global market.”
The Malaysian company aims to accelerate its energy transition strategy to position itself for future growth, it said.
Petronas remains committed to “ensuring energy security and fostering continued collaboration with stakeholders to safeguard the nation’s interests and support nation-building efforts,” the state firm noted.
Earlier this month, Bloomberg again reported, citing unnamed sources, that Petronas was looking to place a dollar bond with investors. This would be the company’s first debt issuance in U.S. dollars since 2021 as it faces a solid chunk of its debt maturing next year.
Free Trial: Access 13,300 Tank Terminal and Production Facilities
13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data
