Cypark to allocate RM200 million for capex
KUALA LUMPUR: Cypark Resources Bhd will allocate up to RM200 million for capital expenditure (capex) for financial year ending Oct 31, 2018 (FY18) on projects related to the concession businesses that it had secured recently.
Group chief executive officer, Datuk Daud Ahmad, said the projects included a RM260.51 million contract for works related to a large-scale solar photovoltaic plant, as well as its Ladang Tanah Merah waste-to-energy (LTM WTE) 25-megawatt power plant, both in Negeri Sembilan.
“The capex will be spent on building the plants,” he told a media conference after chairing the company’s 13th annual general meeting yesterday.
In the filing to Bursa Malaysia in January this year, Cypark said, the engineering, procurement, construction and commissioning of the RM260.51 million project would be for a period of 24 months, while the operation and maintenance contract would be for 21 years. On the LTM WTE plant, Daud said, although its construction was expected be completed by year-end – a slight delay from its initial target of mid-2018 – it would not affect the company’s concession period of 21 years.
“If we complete it (the construction of the plant) earlier, then we will start our operations earlier and vice versa, so it will not affect anything, including our future earnings,” he said.
Additionally, Daud said, the company was bidding for up to RM1.5 billion worth of solar PV-related projects mainly in Malaysia, and one in Singapore. As such, he was confident of the company achieving 10-20 per cent growth in net profit for FY18, up from a 11.4 per cent increase to RM57.6 million in FY17. On another note, Daud said, the company did not expect to be affected by the United States’ decision to impose a 30 per cent tariff on imported solar panel.
“We are the buyer of solar panels, and we expect that there will be a downward adjustment in terms of pricing due to the expectation of short-term supply glut, as many projects might be cancelled in the US.” — Bernama