KUALA LUMPUR: RAM Scores expects Edra Photo voltaic Sdn Bhd’s debt service capability to be sturdy over the remaining tenure of its RM245mil Asean Sustainability SRI Sukuk.
It stated on Monday it reaffirmed the corporate’s AA2/Secure ranking, with minimal and common annual finance service protection ratios (FSCRs) (with money balances) of 1.68 occasions and seven.25 occasions (base case: 1.70 occasions and seven.38 occasions).
The ranking displays the sound challenge economics of the corporate’s 50 MWac photo voltaic photovoltaic plant (the Plant) in Kuala Ketil, Kedah.
Edra Photo voltaic’s beneficial energy buy settlement (PPA) with Tenaga Nasional Bhd
(TNB, rated AAA/Secure by RAM) and the Plant’s strong operational efficiency underline the Firm’s sturdy debt protection.
The plant generated a complete internet power output (NEO) of 88,702 MWh in 2020, outperforming our sensitised projection of 77,851 MWh (+13.9%) in addition to the declared annual amount (DAQ) of 78,114 MWh – the forecasted annual electrical energy output submitted to TNB in accordance with the PPA.
The PPA requires the plant to fulfill not less than 70% of its DAQ for every contract yr.
RAM identified the Plant’s 5 months’ 2021 NEO (39,584 MWh) surpassed its seasonally prorated DAQ for 2021 by 12.2%.
“The sturdy NEO is a mirrored image of superior plant availability of near 100%, with no surprising downtime recorded in 2020 and 5M 2021.
“Motion restrictions necessitated by the COVID-19 pandemic didn’t have an effect on the Plant’s power technology and operations and upkeep routine.
“Consequently, Edra Photo voltaic’s income and working revenue earlier than depreciation, curiosity and tax elevated a respective 14.3% and 16.6% y-o-y to RM34.5 mil and RM29.0 mil in FY Dec 2020 (FY Dec 2019: RM30.2 mil and RM24.9 mil).
“With no additional capital expenditures after the plant’s completion in 2019, Edra Photo voltaic’s pre-financing cashflow turned optimistic with RM33.3 mil recorded in FY Dec 2020 towards a deficit of RM24.8 mil a yr earlier.
“We count on the corporate’s sensitised pre-financing cashflow to common RM21.5 mil every year all through the Sukuk’s tenure (base case: RM22.8 mil) on the assumptions of decrease power output and better gear degradation,” RAM stated.
Edra owns and operates 9 energy vegetation in Malaysia, Egypt and Bangladesh.
Background:
Edra owns and operates 9 energy vegetation in Malaysia, Egypt and Bangladesh. It additionally has investments in an influence asset in Pakistan, in addition to an influence and desalination asset within the United Arab Emirates.
Edra is the second largest impartial energy producer (IPP) in Malaysia, with a complete producing capability of two,845 MW and efficient capability of two,326 MW from its 4 energy vegetation, which include two mixed cycle fuel turbine vegetation (one with co-generation services), and one coal-fired sub-critical thermal energy plant.
In Egypt, the Group owns and operates three gas-fired typical thermal energy vegetation with a complete producing capability of two,048 MW and efficient capability of 1,740 MW, making it the biggest IPP group within the nation.
In Bangladesh, the Group owns and operates two CCGT energy vegetation, with a complete producing capability of 810 MW and efficient capability of 445.5 MW.
The Group has an funding in a 157 MW mixed cycle gas-fired baseload energy station positioned in Pakistan. Its efficient capability is 36 MW.
Edra can be a part of a consortium that owns and operates the Taweelah B IWPP, the biggest impartial water and energy challenge within the UAE. The Group has a ten.0% efficient curiosity within the Taweelah B IWPP, which has a complete energy technology and desalination capability of two,000 MW and 160 MIGD.
