TNB MULLING OVER SESB STAKE SALE
Company in talks with authorities to decide on best option
NATIONAL utility company Tenaga Nasional Bhd (TNB) is mulling over the disposal of its stake in Sabah Electricity Sdn Bhd (SESB), whether partial or the entirety.
TNB owns 83 per cent of SESB, with the rest of the stake held by the state government.
“We are discussing the matter with the Energy, Green Technology and Water Ministry and the Energy Commission.
“SESB should have undergone certain tariff reforms but this has not been happening.
“I think it is about time we reviewed the situation. We are still in discussions and hopefully, we will come to an agreement next year on what is the best option to take,” said TNB chief executive officer Datuk Seri Azman Mohd after the company’s annual general meeting, here, yesterday.
He said TNB was in discussions with SESB on “sustainability and structural issues”.
TNB chief financial officer Datuk Fazlur Rahman Zainuddin said the cost to generate electricity in Sabah had raised some sustainability issues.
“We are going through the process of structural matters that need to be studied in Sabah. Ownership is one of the many factors,” he said.
On its financial performance, TNB is targeting to derive 20 per cent of its profit from overseas by 2025 to offset the expected slowdown in domestic growth.
“There has been a decoupling of electricity demand from gross domestic product (GDP) growth, so we will look outside of the country to diversify our revenue.
“The reason for this is primarily because Malaysia is moving towards a service-driven economy. We think electricity demand growth will go down in relation to GDP,” said Azman.
TNB recently announced two overseas investments through a 30 per cent stake in GAMA Enerji, Turkey, and a 30 per cent stake in GMR Energy, India.
TNB shares closed six sen lower to RM15.38 yesterday.