KUALA LUMPUR: Genting Bhd aims to generate US$8.5 billion in revenue over the next 25 years from developing and operating a gas power plant in the Zhejiang province.
Genting president, chief operating officer, and executive director Datuk Seri Tan Kong Han, said that the power plant is projected to bring in US$343 million annually starting 2026, as the project is expected to complete next year.
Today, Genting announced its plan to purchase a 49 per cent equity stake in SDIC Jineng (Zhoushan) Gas Power Generation Co Ltd, a company based in China, for 100 million yuan (RM64.87 million).
SDIC Jineng (Zhoushan) Gas Power Generation Co Ltd was established to own and develop a 2 x 745MW gas-fired power plant in Zhoushan, located in the Greater Shanghai Area of Zhejiang Province, China.
The majority shareholder, holding 51 per cent, is SDIC Power Holdings Co Ltd.
Additionally, Tan expressed optimism about the power business's prospects, despite its relatively small contribution compared to the company's leisure and hospitality sector.
"In our most recent annual report, you'll see that our leisure and hospitality sector generated approximately US$4.9 billion in revenue," he said.
"In contrast, our power segment contributed around US$365.7 million by the end of last year, which is a relatively small portion of our overall earnings. This smaller contribution might not catch much attention compared to the substantial US$4.9 billion from leisure and hospitality," he added.
"However, considering the current gas prices and market conditions, the power segment could potentially bring in around US$1.3 billion in revenue," he told reporters.
Tan said this significant increase in revenue is why the company is enthusiastic and and has dedicated considerable time and resources to this area.