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Cypark WTE projects, deals boost revenue

Posted: 18 Apr 2016 ?? ?Print Version ?Bookmark and Share

Keywords:renewable energy sector? solar energy? power plant bidding?

During the company's annual general meeting last week, Cypark Resources Bhd's CEO Datuk Daud Ahmad said an annual revenue of up to RM150 million from its renewable energy sector is to be expected by the end of 2017. This is supplemented by its SMART waste-to-energy (WTE) project and other contracts.

The newly integrated renewable energy company is targeted to contribute more than 60% to its revenue for the sector by the end of 2017. "By the end of 2017, we will have RM140 million to RM150 million coming in from in-house, existing, secured projects," Ahmad told reporters last week.

Cypark's latest SMART WTE project in Ladang Tanah Merah, Negri Sembilan, has completed phase 1 of its sanitary landfill development, and currently contributes income in the form of tipping fees of the landfill.

In November last year, Cypark won a 25-year concessionaire period with the government to treat and dispose of solid waste at the WTE plant in Tanah Merah, over a 21-year period.

"By 2017, we will generate income from the generation and sale of renewable energy. The waste will be converted into feedstock for our power plants so that we are able to run the power plant 24 hours a day and supply energy to Tenaga Nasional on a feed-in tariff basis," Daud said, adding that the business will have a total generation of RM100 million a year upon completion.

Currently, the renewable energy sector generates RM40 million revenue for the company.

Daud said the group has secured and signed other renewable energy deals, including participation in the recent prequalification process by the Energy Commission to bid for the development of a 1,000MW solar power plant.

"We expect the process to take two to three months, and by June or July, a request for proposal will be issued to invite us to submit our bid on a competitive basis. So we have to prove the credibility of our business model."

He added that the company is more bullish about its dividend policy due to the stronger cash flow from projects, possibly seeing an increased payout of 30% to 40%, from the current 25%.

"This year will be exciting for us in terms of securing new opportunities and 2017 will be an exciting year for generation of revenue and to reap the fruits of our efforts," Daud said.

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