Sabah Electricity directed to pay compensation to Mega First

PETALING JAYA: The Arbitral Tribunal has directed Sabah Electricity Sdn Bhd to pay compensation to Mega First Corp Bhd’s (MFCB) power generation subsidiary Serudong Power a total of RM28.79mil.

In a filing to Bursa Malaysia last week, MFCB said the Arbitral Tribunal had ordered Sabah Electricity to pay to its subsidiary the principle shortfall amount of RM19.23mil in energy payment and capacity payment for the period between Nov 15, 2007 to Dec 1, 2016.

Furthermore, the Arbitral Tribunal order also included interest on the shortfall in energy payment and capacity payment for the period between Nov 15, 2007 to Nov 30, 2016 and calculated up to May 31, 2018 a total of RM9.13mil as well the claimant’s representation costs fixed at RM420,000.

The group believes the final award of RM28.79mil would have a positive impact on the earnings and net assets of MFCB for financial year ending Dec 31, 2018.

Moving forward, MFCB also looks forward to an increase of 2.86 sen in earnings per share and an increase of 2.86 sen in net assets per share.

“The combined amount of RM28.37mil from principal shortfall and interest had been recognised in MFCB’s consolidated income statement for the six-month period ended June 30, 2018 and announced on Aug 28, 2018.

“This would result in a marginal improvement in the group’s gearing.

“However, it is not expected to have any effect on MFCB’s share capital and substantial shareholders’ shareholdings,” the group added.