KUALA LUMPUR: Cypark Resources Bhd targets to secure potential jobs from the RM3bil to RM4bil worth of engineering, procurement, construction and commissioning works available in the market.

       This will involve offering its expertise in solar project development to the recently announced winners of the country’s fourth cycle of large scale solar (LSS4) tenders.

       Cypark believes there will be further extension to the LSS programme – possibly LSS5 and LSS6 – that could prospectively offer similar excitement as the 2020’s LSS4 tender.

       The group is also looking for opportunities to supply renewable energy (RE) directly to end clients via peer-to-peer and third-party access initiatives, with the government’s proposed market liberalisation measures under the Malaysian Electricity Supply Industry 2.0 programme.

       Cypark targets to increase its total RE capacity under its operation to 300MW to 400MW in the next few years and further expand its client base. For its fourth quarter ended Oct 31, 2021 (Q4), Cypark’s net profit rose 20% year-on-year (y-o-y) to RM25.7mil while revenue was 6.45% higher at RM87mil.

       In a Bursa filing, the group said the increase in net profit in Q4 was mainly due to savings achieved in finance costs and tax expenses, while the higher revenue was mainly contributed by the continuous work progress from the LSS projects and specialist and consultancy works performed.

       For Q4, earnings per share was at 4.47 sen versus 4.36 sen a year earlier. Meanwhile, for FY21, net profit rose 6.7% y-o-y to RM75.4mil while revenue was 3.7% higher at RM315.3mil.

       Cypark noted that the lower project profit in FY21 was mainly due to additional project costs incurred for the projects affected by the pandemic, although this was offset by an increase in profit due mainly to savings in the interest cost achieved through the conversion of certain conventional financing to issuance of perpetual sukuk and lower borrowing rates.

       Cyparks renewable energy park in Pajam

       Also, lower administrative costs were reported in FY21 mainly due to the recognition of Employee Share Option Scheme (ESOS) expense of RM2.1mil in FY20.

       For FY21, earnings per share was was 12.78 sen versus 14.94 sen a year earlier.

       The group work is progressing well on the 100MWac LSS3 project in Merchang, Terengganu and upon completion, it will contribute to Cypark’s revenue in the financial year ending Oct 31, 2022 (FY22).

       Cypark said together with the LSS3 project and a total of 150MWp solar assets including 100MWp floating solar under the EPCC plus operation and maintenance (O&M) long term contract, the number of secured capacity of solar assets built, owned and operated by Cypark will reach over 375MWp.

       “Cypark is optimistic with our success rate in future LSS contracts to meet the national generating target of 6000MW by 2025,” said the group, adding that its collaborations with state-linked companies or agencies in Kedah, Negeri Sembilan, Melaka and Johor are expected to secure a total capacity of up to 100MW potential Net Energy Metering (NEM) projects in the next two years, where some will be under Supply Agreement of Renewable Energy (SARE) while others will be direct EPCC.

       Concurrently, Cypark has been actively participating in several private NEM tenders from universities and government-linked companies.

       Regarding its biomass venture, Cypark said it has shown good prospects for further growth and with increasing demand locally and regionally for biomass pallets, the biomass business is targeted to contribute to the group’s performance in FY22 and beyond.

       “The overseas demand for bio mass product remains strong despite the Covid-19 pandemic. Hence, Cypark plans to expand its existing plant capacity in the future and to develop more biomass plants later in 2022,” said the group.

       As for its waste management and waste-to-energy (WTE) businesses, the group noted that its WTE plant at Ladang Tanah Merah, Negeri Sembilan is the first of its kind in Malaysia.

       “Once the plant is commissioned, the integrated WTE plant is expected to contribute up to RM80mil a year in revenue.”

       Also, Cypark is participating in two WTE tenders in Johor and Malacca in collaboration with Johor and Malacca state-owned companies.

       The two WTE tenders are part of the five WTE tenders that were announced by the Ministry of Housing and Local Government under its national WTE implementation plan.

       The group said it stands a good chance to win more WTE projects in the future, with its track record of constructing, owning, and operating the country’s first WTE plant

       Cypark expects future WTE plant capacity to be between 15MW to 25MW with an expected investment value of above RM500mil each.