Cypark: Revenue from WTE project to start flowing in 2017

PETALING JAYA: Cypark Resources Bhd expects to recognise revenue from its wasteto-energy (WTE) plant in Ladang Tanah Merah, Negri Sembilan, in 2017 when all phases of the project are completed.

Group CEO Datuk Daud Ahmad said the project, which will be a major boost to the group’s income, consists of four phases and the first phase has been completed while the second phase is ongoing.

“Along the way, by some phases, revenue will come in. The future income from the WTE project may be over RM2 billion over a 25-year concession,” he told reporters after the group’s AGM here yesterday.

The group started construction of the WTE plant last year, Daud said, and it is focusing on implementing it this year.

“We’re looking at building assets to generate concessionaire income. We want to work on (projects with) secure income rather than a year-to-year order book, which is not stable. This (WTE) type of project is recession-resilient, without the foreign exchange (risks).”

He said the group hopes to maintain its current (revenue) growth level of above 10% this year.

“We’re still doing okay this year to sustain the current growth until we complete the WTE plant, which will be a major boost to our income,” said Daud.

Meanwhile, the group plans to partly fund the WTE project using proceeds from a private placement.

It has proposed to place out new shares representing up to a 20% stake and to exempt Daud and executive chairman Tan Sri Razali Ismail from having to make a mandatory general offer. Daud, who currently owns a 7.81% stake in Cypark, will subscribe to a 10% stake.

“The remaining 10% is open (for subscription) as per the resolution. We’ve not identified (the investors) yet at this juncture,” he said, adding that it will see who is keen to take up the shares after obtaining approval from an EGM to be convened on May 6.