KUALA LUMPUR: Cypark Resources Bhd posted revenue of RM32.2 million for the sixth quarter (Q6) that ended April 30, 2023 (FY23), mainly from contributed by the sale of electricity and operation and maintenance revenue generated from the existing brownfield projects.
The company reported a net loss of RM298,480 for the period, mainly due to the accounting provision of potential liability arising from liquidated ascertained damages (LAD) from delays in existing projects, impairment of intangible assets, contract assets, and long outstanding receivables on the prolongation costs to completion totalling RM376 million.
For FY23, Cypark posted revenue of RM312 million, mainly from the renewable energy and waste management and waste-to-energy (WTE) divisions.
Cypark's WTE plant, the first in Malaysia located in Ladang Tanah Merah, Negeri Sembilan, was commissioned in December 2022 and is now generating and exporting green energy daily to Tenaga Nasional Bhd.
The Cypark LSS2 solar project in Sik, Kedah, was successfully commissioned in January 2022 and has continued to provide revenue from the export of electricity since commissioning.
The recurring revenue from these two concession projects is expected to contribute long-term sustainable cash
flow to Cypark.
Cypark chairman Datuk Ami Moris said the impairment assessment was done in a timely and prudent manner to reflect the company's financial position.
He said it enables the management to focus on completing active projects.
"Moving forward, we remain focused on delivering active projects, such as the
Selgate RM109 million hospital construction contract, LSS2 floating solar project in Danau Tok Uban, Kelantan
and LSS3 solar project in Merchang, Terengganu.
"Upon completion, the LSS2 floating solar will be the largest floating solar in the world outside China with a combined capacity of 60MWac/100MWdc while LSS3 Merchang will become the largest solar farm in the country with 100MWac/171MWdc capacity.
"Both are targeted to be completed
by the end of 2023. With this, Cypark will have approximately 400 MW of RE assets under its operational portfolio,
maintaining our position as the largest RE player in Malaysia," he said in a statement.
Ami Moris said while the focus is to complete active projects, Cypark
continues to identify immediate opportunities, such as the corporate green power purchase (CGPP) program, lifting the export ban on renewable energy, and accelerated energy transition plans by corporates and governments.