CEO Morning Brief

After a Two-year Delay, Cypark Achieves Commercial Operation Date for 100MW LSS3

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Publish date: Tue, 11 Jun 2024, 10:33 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 10): Cypark Resources Bhd (KL:CYPARK) said that it achieved the commercial operation date (COD) of its 100MW Large Scale Solar 3 (LSS3) hybrid solar plant project in Merchang, Terengganu, last Sunday (June 9).

In a statement on Monday, executive director Muhammad Ashraf Muhammad Amir also expressed confidence in the timely delivery of the LSS2 floating solar plant in Danau Tok Uban, Kelantan, targeted for COD in the third quarter of this year, as well as readiness to participate in the Third-Party Access (TPA) programme anticipated to be introduced later in 2024.

The LSS3 plant, comprising 35MW of floating solar photovoltaics and 65MW of ground-mounted solar photovoltaics, is now fully operational, contributing renewable energy to the national grid, said the statement.

Executive chair Datuk Ami Moris said that reaching the COD for the Merchang Hybrid Solar Energy Plant demonstrates the group's commitment to becoming a significant contributor to the country’s net zero ambitions.

Cypark Resources Bhd executive director Muhammad Ashraf expressed confidence in the timely delivery of the LSS2 floating solar plant in Danau Tok Uban, Kelantan.

Cypark's LSS2 and LSS3 projects, both 21-year concession assets, have experienced several delays.

The LSS2 project, originally scheduled for completion at the end of 2021, and the LSS3 project, scheduled for completion in March 2022, have both been delayed until December 2023, according to the group's annual report for the financial year ended April 30, 2023 (FY2023).

In March, the group deferred a periodic distribution of coupon payments under a RM500 million perpetual sukuk programme to prioritise funds for completing the LSS2 and LSS3 projects. At that time, Cypark assured that the company had sufficient cash flow to deliver its ongoing projects, supported by Jakel Capital's subscription of RM265 million sukuk and available banking facilities from its principal bankers.

Cypark Resources Bhd executive chair Datuk Ami Moris said that reaching the commercial operation date for the Merchang Hybrid Solar Energy Plant demonstrates the group's commitment to becoming a significant contributor to the country’s net zero ambitions.

For the nine-month period ended Jan 31, 2024, Cypark posted a net loss of RM26.68 million on a revenue of RM35.89 million. There is no year-on-year comparison as Cypark changed its financial year in 2023 to April 30 from Oct 30. The net loss was attributed to a sharp rise in amortisation of RM21 million due to a policy revision by its new audit committee, which disagreed with the extension of its waste-to-energy plant's useful life.

Shares in Cypark gained 3.5 sen to 94 sen, resulting in a market capitalisation of RM769.21 million.

Source: TheEdge - 11 Jun 2024

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