KUALA LUMPUR (April 23): Cypark Resources Bhd said on Tuesday that its 100MW Large Scale Solar 3 (LSS3) hybrid solar plant project in Merchang, Terengganu, will transition to full commercial operations by next month.
In a statement, the group said the plant consists of 83MWac (megawatt, alternating current) ground-mounted solar photovoltaics and 32MWac floating solar photovoltaics.
"The 100MW project has achieved initial operations as of April 21, 2024. With the initial operations completed, the plant will transition to full commercial operations over the next two weeks," it said.
Cypark executive chair Datuk Ami Moris said in the statement that the group remains confident in becoming a leading Malaysian energy provider, especially with the next delivery of its LSS2 floating solar project of 60MWac in Kelantan.
In an interview with The Edge last year, she said both the LSS2 and LSS3 projects are 21-year concession assets that would generate recurring revenue streams for the group.
The LSS2 project's completion date was previously postponed by nine months to September 2022 from end-2021, while the LSS3's completion had been pushed to end-2022 from March 2022.
Last month, the group deferred a periodic distribution of coupon payments under a RM500 million perpetual sukuk programme to prioritise funds to complete the LSS2 and LSS3 projects. At the time, Cypark gave its assurance that the company had sufficient cash flow to achieve the delivery of its ongoing projects, following Jakel's subscription of RM265 million sukuk, as well as available banking facilities from its principal bankers.
“The Jakel group as the new major shareholder has successfully provided a needed boost of both capital and project management expertise, while our reconstituted board is doing the right things to ensure the long-term sustainability of Cypark,” Ami said in the statement on Tuesday.
The company's perpetual sukuk stood at RM502.08 million as at Jan 31, according to its latest quarterly report.
For the financial quarter ended Jan 31, 2024 (3QFY2024), the group reported a net loss of RM27.98 million, on the back of RM35.89 million in revenue. 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 due to a sharp rise in amortisation amounting to RM21 million, due to a policy revision by its new audit committee, which appeared to disagree with the extension of its waste-to-energy plant's useful life.
At the time of writing on Tuesday, shares in Cypark were down one sen or 1% at 99 sen, with six million shares traded, giving the company a market capitalisation of RM810.53 million.