PETALING JAYA: Genting Bhd
’s floating liquefied natural gas (FLNG) facility could potentially add RM613mil per year to its net profit from the financial year 2027 (FY27) onwards and RM1.27 per share to fair value, says CIMB Securities.
Recall in June 2024, the gaming group had awarded about US$1bil in engineering, procurement, construction, installation and commissioning contracts to Wison New Energies for a 1.2 million-tonnes-per-year FLNG facility.
To be installed in West Papua (Indonesia), the feed gas for the FLNG facility will be supplied from Genting’s Kasuri Block concession, with the first drop of LNG scheduled for third quarter of 2026.
“We estimate it could contribute revenue of US$704mil per annum based on the annual production of 65.2 one million British thermal units (mmbtu) and LNG price of US$10.80/mmbtu assuming a 20% net margin to Genting from FY27 onwards,” the research house said in a report.
Additionally, it is in the advance stages of securing project financing from a group of Chinese and international lenders. Apart from this, Genting is said to be keen on listing its US resorts/casino business.
