KOTA KINABALU: A local credit rating agency has affirmed its AAA/Stable rating for Sabah-owned SMJ Energy (SMJE) for its Multi-Currency Islamic Medium Term Notes (Sukuk Wakalah) Programme of up to RM10.0 billion.
Quoting RAM Ratings' report, SMJE said that the rating was bolstered by its critical role in Sabah, ongoing strong support from the state government and its robust cash flow generation.
The report highlighted that SMJE had been entrusted with overseeing the development of the state's oil and gas resources, ensuring that the state government received a greater share of revenue, and contributing to energy security in the region.
"SMJE's expanding role in Sabah's oil and gas sector is also anticipated to attract foreign direct investments, such as ESteel's US$2 billion steel project at the Sabah Oil & Gas Industrial Park and Kibing's RM7 billion solar glass manufacturing expansion in Kimanis," according to SMJE's statement.
For the Financial Year 2023, SMJE reported a profit after tax of RM259 million and declared a RM50 million dividend to the Sabah government.