26 Performance Revi ew 02 Sect ion Ranhi ll Ut i l i t i es Berhad MESSAGE FROM CHAIRMAN AND CHIEF EXECUTIVE Tan Sri Hamdan Mohamad Cha i rman and Chi ef Execut i ve Dear Stakeholders, FY2022 saw Ranhill continue to pursue its strategic objectives towards strengthening its position as a leader in the Environment, Energy and Engineering Services sectors, both in Malaysia and abroad. Ranhill own and operates 380 Megawatt power plants and produce electricity to 1.2 million people in Sabah OVERVIEW In FY2022, COVID-19 related restrictions on business activities were lifted. This enabled full operational capacity for all businesses, and Ranhill correspondingly looked to capitalise on the recovery in demand for water, energy, and infrastructure consulting and project management services. Ranhill’s business operations comprises three economic sectors. These are the Environment, Energy and Engineering Services sectors. Across our Environmental sector, our focus was to expedite completion of water treatment plants (“WTP”) and related works to boost water supply and capacity at key locations in Johor, to undertake continued non-revenue water (“NRW”) loss reduction efforts across the state and to drive further progress on our proposed source to tap potable water project in Indonesia via a consortium. Ranhill SAJ’s operations in Johor as well as RWTT and AnuRAK in Thailand and RWHK in China have continued to achieve a high level of compliance for the key performance indicators (“KPIs”) set by regulatory authorities. The Group’s Energy sector continued to deliver as Sabah’s largest independent power producer, providing up to 40% of the installed energy generation capacity in the state. The energy sector had also tendered for several projects locally and we await the outcome of these efforts in FY2023. I am pleased to share that we have received positive news from the Energy Commission of Malaysia (“EC”) that Ranhill has been selected as the successful bidder under the Request for Proposal dated 28 February 2022 (“RfP”) : New Power Generation Capacity Required in Year 2024 for West Coast, Sabah (the “Project”). With the project’s expected commercial operation date (“COD”) of 1 March 2026, it shall contribute financially to Ranhill’s future revenue and earnings. Further details on the project and other Energy sector highlights are provided in the Management Discussion and Analysis section of this annual report. Our Engineering Services sector underpinned by an upturn in the oil and gas and construction sectors also successfully replenished their order books on the back of new contracts secured during the financial year. These achievements have bolstered the Group’s financial performance for FY2022 while paving the way for further value creation going forward. While we continue to face rising costs due to inflationary pressures as well as other challenges such as disruptions in global supply chains, Ranhill has continued to persevere against the challenges to fulfil
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