31/12/2025

BIZ & FINANCE WEDNESDAY | DEC 31, 2025

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Kawan Renergy achieves record revenue in Q4

IPOH: Kawan Renergy Bhd (Kenergy), an engineering solutions provider, primarily involved in the design, fabrication, installation, and commissioning of industrial process equipment, industrial process plants, as well as renewable energy and co-generation plants, achieved a record high revenue of RM42.7 million, up 8.9% year-on-year for its fourth quarter results for the financial year ended Oct 31, 2025 (Q4’25). In a statement, the company attributed to the higher progress-based contract recognition from renewable energy and co-generation plant projects, which accounted for 55% of the total revenue. In line with the resilient topline performance, gross profit rose 24.1% year-on year to RM10.1 million, underpinned by steady completions of existing industrial process plant projects and the continued roll-out of new projects. The profit after tax and minority interest (Patami) surged 55.6% to RM6.4 million, attributed to the favourable project mix, as revenue contribution from renewable energy and co-generation plant projects expanded by approximately five-fold to RM23.5 million. For the full year, Kenergy said, revenue expanded 22% year-on-year to RM138 million, compared with RM113.1 million in the previous year. The growth was largely driven by the renewable energy and co-generation plant segment. The segment’s revenue more than doubled to RM39 million, equivalent to 28.3% of total revenue. The industrial process equipment segment remained the group’s core business, contributed approximately 47.6% of overall revenue. As a result, gross profit and Patami increased by 11.2% and 31.5% to RM37.3 million and RM23.7 million respectively, in line

with the group’s business strategies particularly its focus on the renewable energy and co-generation plant segment. Kenergy’s order book remains healthy at RM108.2 million, underpinning solid earnings visibility for the next 12 to 24 months. Kenergy managing director Lim Thou Lai remarked, “We are pleased with our full-year results, which demonstrate the effectiveness of our business strategies despite a challenging market environment. Malaysia continues to face strong demand for power to electrify urban cities, data centres, and industrial segments, and initiatives like the National Energy Transition Roadmap are critical. We remain focused on supporting our clients in meeting their energy needs while also capturing the value from carbon credits.” As a renewable and clean energy solutions o Stronger project mix and steady industrial plant deliveries lift margins

Group’s growing renewable energy portfolio continues to drive business momentum, backed by solid project pipelines. – KAWAN RENERGY WEBSITE

provider, he added, they work closely with their clients to develop end-to-end power solutions, leveraging their in-house fabrication and

engineering expertise that support both industrial processing and power generation applications.

Velesto disposes of workover services unit for RM16.5 million Group reshaping upstream services portfolio while exploring complementary value-enhancing opportunities. – VELESTO WEBSITE

KUALA LUMPUR: Velesto Energy Bhd via its wholly owned subsidiary Velesto Malaysian Ventures Sdn Bhd has entered into a Share Sale Agreement (SSA) with Enviros Survey & Consultancy Sdn Bhd. Pursuant to the SSA, Velesto will dispose of its entire equity interest in Velesto Workover Sdn Bhd (VWSB) for a total cash consideration of RM16.5 million. In a statement, the company said the disposal is expected to result in a gain on disposal of approximately RM0.4 million based on net asset of VWSB as at Sept 30, 2025. Velesto president Megat Zariman Abdul Rahim said, “The divestment is consistent with our approach to portfolio management. It is aligned with the group’s ongoing efforts to

streamline operations, support returns to shareholders, and optimise capital allocation.” He added they are also taking measured steps to develop complementary areas in line with the group’s longer-term direction to pursue value-enhancing opportunities. VWSB provides workover services, which form part of Velesto’s upstream oil and gas services offering. The proposed disposal is expected to be completed by first half of 2026.