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34 Genting Berhad Annual Report 2007 Planting activities at Ketapang Land, Kalimantan, ACGT’s laboratory at Technology Park Malaysia Prime Minister of Malaysia, Dato’ Seri Abdullah Indonesia. Ahmad Badawi visiting the ACGT’s booth during the BioMalaysia 2007, accompanied by Asiatic’s Chairman, Tan Sri Mohd Amin. ACGT’s logo was launched in July 2007 in conjunction with the Asiatic Indahpura in Johor is the Division’s flagship project of mixed Malaysian Biotechnology Corporation’s Second Eminent Speakers residential and commercial developments. It was the key contributor Series in which Dr Aristides A.N. Patrinos, President of Synthetic to the Division, with sales of RM41.0 million in 2007. The sales were Genomics, Inc., spoke on the impact of global warming and synthetic mainly derived from its newly launched Diamond range double-storey biology on the development of industrial biotechnology in Malaysia. and Iris range single-storey terrace houses, which contributed RM20.2 million in sales. In August 2007, ACGT moved into its office and laboratory at Technology Park Malaysia in Bukit Jalil. The new office is located in Asiatic Cheng Perdana in Melaka continued to generate good two adjacent lots with a total area of 5,509 square feet. The laboratory revenue of RM14.2 million, despite being at the tail end of its is equipped to carry out experiments in bioinformatics, DNA and development. The revenue was mainly contributed from its newly RNA extraction, DNA sequencing, gene cloning, marker analysis and launched single and double-storey terrace houses as well as semi- microbial isolation. Nine scientists have been recruited and one of detached houses which generated a combined sales of RM11.0 the scientists has undergone training in bioinformatics at the J. Craig million, representing 77% of the project’s total sales. Venter Institute in Rockville, Maryland, USA. Development activities in Asiatic Permaipura, Kedah were relatively subdued due to market conditions. The Permaipura Golf and Country Club, one of the popular golf clubs in Kedah, performed reasonably well despite strong competition from other golf clubs. Asiatic Permaipura PROPERTY continued its marketing efforts by introducing innovative tournament www.asiatic.com.my packages to attract more local and foreign golfers to the club. The Property Division registered revenue of RM81.7 million in 2007 In 2007, the division had a maiden launch for its fourth property (2006: RM107.9 million) due to rising inflation and slowdown in project, Asiatic Pura Kencana Sri Gading in Batu Pahat, Johor. The the global economy. The Division’s profit before tax in 2007 was project is a 320-acre mixed residential and commercial development. RM23.0 million (2006: RM25.7 million). The Division is led by Asiatic The project’s maiden launch consisted of 122 units double-storey shop Land Development Sdn Bhd, which develops the Asiatic brand of offices. The take-up rate was good with over 50% of the shop offices properties in Malaysia. sold at a sale value of RM22.9 million. The Kijal Beach Resort Apartments, which are strategically located beside Awana Kijal in the east coast of Terengganu, continued to enjoy good tenancy and registered an average rental occupancy rate of Residential & commercial developments in Asiatic Indahpura, Johor 66% in 2007. The 89 units of apartments offer panoramic views of the South China Sea and overlook Awana Kijal’s 18-hole championship golf course. Kijal Beach Resort Apartments, Terengganu Genting Berhad Annual Report 2007 35 Nanjing power plant Wuxi power plant Suzhou power plant Meizhou Wan power plant Lanco Kondapalli power plant Aban power plant Kuala Langat power plant Kuala Langat Power Plant, Malaysia Location Map of Genting Power Plants POWER www.gentingsanyen.com The Division has a 36.26% interest in Aban Power, a 113MW gas-fired Genting Power Holdings Limited spearheads the Power Division. combined cycle plant in the Tanjore District of Tamil Nadu which began The Division recorded another year of good performance in 2007, commercial operations in August 2005. with a revenue of RM1,491.6 million (2006: RM1,325.8 million), while profit before tax was RM505.9 million (2006: RM458.6 million). In total, Bio-Oil Activities the Power Division has net attributable generating capacity of about 1,450MW from interests in seven power plants in Malaysia, China and The Group continued to invest in the renewable energy sector in 2007. India. Genting Bio-Oil Sdn Bhd (“GBO”) commissioned its bio-oil pilot plant in Ayer Itam, Johor in 2006. The purpose of the pilot plant is to convert The Division’s subsidiary, Genting Sanyen Power Sdn Bhd (“Genting empty fruit bunches from oil palm plantations into bio-oil, a source of fuel Sanyen Power”) is an Independent Power Producer that owns and that could be used for direct co-combustion at power plants and boilers operates a 720MW Kuala Langat power plant in Selangor. In its twelfth to generate heat and electricity. Although the pilot plant continues to year of full commercial operations in 2007, this gas-fired combined demonstrate full cycle production from empty fruit bunches into bio-oil, cycle power plant remains highly ranked in the merit order despatch it will undergo engineering upgrades. Full commercial operations have schedule of Tenaga Nasional Berhad, Malaysia’s national utility group. been targeted in 2009. GBO’s bio-oil production process has been certified by the Clean Development Mechanism (“CDM”) Executive The largest asset in the Chinese power plant portfolio is the 100%- Board as one of the “Approved Methodologies” (Ref AM0057), which owned 724MW Meizhou Wan coal-fired power plant in Fujian Province. allows all future bio-oil plants and users of bio-oil to qualify for carbon The Division also owns majority interests in three peaking plants in credits. The CDM is an arrangement under the Kyoto Protocol that the Jiangsu Province, comprising 80%-owned 76MW Nanjing diesel- facilitates the reduction of greenhouse gases. fired open cycle power plant, 60%-owned 109MW Suzhou gas-fired combined cycle power plant and 60%-owned 42MW Wuxi gas-fired open cycle power plant. In India, the Division’s two power plants, namely Lanco Kondapalli and Aban Power continued to perform well. The Division has a 30% interest in the 368MW Lanco Kondapalli, a gas-fired combined cycle power plant in Andhra Pradesh that is operated and maintained by Genting Lanco Power (India) Private Ltd, a 74%-owned subsidiary of the Group. Lanco Kondapalli Power Plant, India Meizhou Wan Power Plant, China 36 Genting Berhad Annual Report 2007 Testing of the exploration well on the Anambas PSC, Indonesia Driling activities undertaken at Northwest Natuna PSC, Indonesia Drilling activities OIL AND GAS www.gentingoil.com The Oil & Gas Division, spearheaded by 95%-owned subsidiary studied. The AAL Discovery is estimated at around 50 million barrels Genting Oil & Gas Limited (“GOGL”), undertakes the exploration of Contingent Resources. GONPL will work with BPMIGAS on an AAL for and production of oil and gas. It has operations and offices in Plan of Development in order to transform these resources into oil China, Indonesia and Morocco. Genting Oil & Gas Sdn Bhd provides reserves and move towards production. management and technical services to the Division. On Anambas PSC, studies were undertaken and an appraisal well During 2007, the Division’s revenue remained stable at RM142.9 planned for the Anambas Condensate Discovery. On the West Salawati million (2006: RM141.3 million) but profit before tax in 2007 reduced PSC, the operator PearlOil (Salawati) Limited acquired and processed slightly to RM49.0 million (2006: RM51.0 million). 1,191km of offshore marine 2D seismic, acquired 97km of ocean bottom cable seismic data, and drilled the Cilipgo-1 exploration well In China, Genting Oil & Gas (China) Limited (“GOGC”) continued with which was abandoned with oil and gas shows. its operations at the 100%-owned Zhuangxi Buried Hill (“ZBH”) Oilfield in Shandong Province. In 2007, drilling and work-overs increased ZBH The Division continued to monitor its future deferred consideration oil production by 5% such that the oilfield produced 220,547 tonnes rights (under a 2001 contract with BP Global Investments Ltd) to long- or equivalent to 1.51 million barrels of oil (2006: 209,250 tonnes or term cash flows from the Muturi PSC in West Papua. This ‘Deferred 1.44 million barrels). GOGC was entitled to 102,189 tonnes or 701,000 Consideration’ will begin at the end of 2008 or early 2009, when the barrels of this oil (2006: 100,357 tonnes or 688,000 barrels). In 2007, Tangguh Liquefied Natural Gas (“LNG”) Plant begins producing and ZBH oil was sold to Sinopec at an average price of US$59.3 per barrel selling gas from the Muturi PSC. At the end of 2007, over 85% of (2006: US$55.50 per barrel), with the prices ranging from US$43 to the first two LNG Trains and related facilities had been completed. US$76 per barrel over the year. Four new development wells were The Deferred Consideration has not been recognised in the financial started, of which two were completed in late 2007. Construction began statements as the economic benefits arising from the long term future on a new light oil gathering system. As at 1 January 2007, GOGC’s cash flows are not certain as at the end of the financial year and ZBH 2P Working Interest was certified at 17.742 million barrels oil, with therefore cannot be quantified. 2P Net Entitlement Reserves of 8.026 million barrels oil. In Morocco, the division owns 75% of the Ras Juby Offshore In Indonesia, the Division has interests in three Production Sharing Concession via Genting Oil Morocco Limited. During the year, a Contracts (“PCS”), namely 100%-owned Northwest Natuna PSC, 3D seismic survey of 510 square kilometres covering the Cap Juby 100%-owned Anambas PSC and 49.99%-owned West Salawati PSC.