(EnergyAsia, October 29, Wednesday) — Singapore’s Temasek Holdings Pte Ltd said it has begun the divestment process for its third and final wholly-owned Singapore power generation company, PowerSeraya Ltd. This follows last month’s sale of Senoko Power Ltd to a consortium known as Lion Power Holdings Pte Ltd and the sale of Tuas Power Ltd to SinoSing Power Pte Ltd in March 2008.
PowerSeraya has a total licensed generation capacity of 3,100 MW including 740 MW of gas-fired combined cycle plants, 2,000 MW of oil-fired steam turbine plants and 210 MW of diesel-fired open cycle gas turbine plants. In August 2007, it announced plans to invest in a new 800MW natural gas-fired co-generation combined cycle power plant, targeted for completion by 2010.
PowerSeraya accounted for approximately 28% of Singapore’s electricity generation units sold in 2007. For the financial year ended March 31 2008, the company had revenues of S$2,793 million and earnings of S$355 million. (US$1=S$1.50).
Gwendel Tung, Temasek Holdings’ investment director, said: “PowerSeraya is a quality asset. The quality is reflected by its strong cashflow, its strategic location in Singapore and able management. This in turn has attracted strong indications of interest from a number of potential bidders. As with the sale of the other two generation companies, the sale of PowerSeraya will be subject to acceptable price and commercial terms.”
Incorporated in 1974, Temasek Holdings is an Asia-focused investment firm headquartered in Singapore. Supported by affiliates and offices around the world, it owns a diversified S$185 billion portfolio of blue-chip companies and investments as at March 2008 31, concentrated principally in Singapore, Asia and the OECD economies.