Founder Group Secures Letter of Award Valued at US$4.5 Million for Floating Solar Farm Project in Malaysia

Rhea-AI Summary

Founder Group (NASDAQ: FGL) has secured a Letter of Award worth US$4.5 million (RM20 million) for the construction of a floating solar farm in Kuala Langat, Selangor, Malaysia. The project spans 24 acres and will generate 9.99MWac/15.033625MWp of solar power using floating photovoltaic (FPV) technology.

As a sub-contractor, Founder Group will provide labor, tools, materials, and equipment for General Conditions Preliminaries & Consultation. The floating solar farm, featuring panels mounted on floating platforms, is scheduled for completion by June 30, 2025. The project aims to reduce land usage while maximizing energy generation, contributing to land conservation and natural habitat preservation.

Positive

• Secured new contract worth US$4.5 million
• Project adds 9.99MWac/15.033625MWp power generation capacity
• Completion expected within defined timeline (June 30, 2025)

Negative

• Operating as sub-contractor rather than primary contractor
• to labor and equipment supply role

Insights

Financial Analyst

This $4.5 million contract represents a strategic win for Founder Group in Malaysia's growing renewable energy sector. The project's scope as a subcontractor for labor and materials suggests healthy profit margins typically ranging 15-20% in the EPCC solar sector. With a market cap of $38.2 million, this single contract represents approximately 11.8% of the company's market value, making it a material revenue driver.

The floating solar farm technology addresses a critical challenge in land-scarce regions, potentially opening up new market opportunities. The 9.99MWac capacity positions this as a medium-sized project, indicating the company's capability to handle increasingly complex installations. The June 2025 completion timeline suggests revenue recognition will likely span across 2-3 quarters, providing steady cash flow visibility.

The Malaysian government's strong renewable energy initiatives, including the Large Scale Solar (LSS) program, create a favorable backdrop for future contract wins. This project strengthens Founder Group's track record in specialized solar installations, potentially leading to similar high-value contracts in Southeast Asia's rapidly expanding floating solar market.

Renewable Energy Expert

The floating solar project's 15.033625MWp peak capacity utilizing FPV technology represents an advanced implementation in Malaysia's solar landscape. The water-based installation typically offers 5-10% higher energy yield compared to traditional ground-mounted systems due to the cooling effect of water, enhancing overall system efficiency.

The 24-acre water surface utilization demonstrates optimal space efficiency - conventional ground-mounted installations would require approximately 30-35 acres for similar capacity. The project's size hits just under the 10MWac threshold, strategically positioning it within Malaysia's regulatory framework for medium-scale solar installations.

Technical considerations for floating solar farms, including anchoring systems and waterproof components, require specialized expertise. Founder Group's selection as a subcontractor for this technically demanding project validates their capabilities in advanced solar installations, potentially establishing them as a go-to provider for future floating solar projects in Southeast Asia.

KUALA LUMPUR, Malaysia, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Founder Group Limited (NASDAQ: FGL) (“Founder Group” or the “Company”), a leading engineering, procurement, construction, and commissioning (EPCC) solutions provider for solar photovoltaic systems in Malaysia, is pleased to announce that it has secured a Letter of Award (LOA) worth RM20 million (approximately US$4.5 million) for the construction of a floating solar farm in Kuala Langat, Selangor, Malaysia.

Spanning approximately 24 acres, this project, utilizing floating photovoltaic (FPV) technology, is designed to generate 9.99MWac/15.033625MWp of solar power. This cutting-edge FPV technology, which involves solar panels mounted on floating platforms in bodies of water, helps reduce land usage while maximizing energy generation. The project is expected to significantly contribute to land conservation, preserve natural habitats, and reinforce Founder Group’s mission of delivering innovative, eco-friendly energy solutions. It further underscores the Company’s commitment to advancing carbon neutrality.

Founder Group will serve as a sub-contractor, responsible for supplying labor, hand tools, materials, and necessary machinery and equipment to support the execution of General Conditions Preliminaries & Consultation. The floating solar farm is expected to be completed by June 30, 2025.

“We are proud to be selected as a key subcontractor for this innovative floating solar farm project. We look forward to continuing our collaboration on this and future projects, as we work together to support Malaysia’s renewable energy goals and promote a greener, more sustainable future and contribute to the further growth of Founder Group,” said Lee Seng Chi, Chief Executive Officer of Founder Group Limited.

About Founder Group Limited

Founder Group Limited is a pure-play, end-to-end EPCC solutions provider for solar PV facilities in Malaysia. The company’s primary focus is on two key segments: large-scale solar projects and commercial and industrial (C&I) solar projects. The company’s mission is to provide customers with innovative solar installation services, promote eco-friendly resources and achieve carbon-neutrality.

For more information on the Company, please visit https://www.founderenergy.com.my/.

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission, may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

CONTACT INFORMATION:

For media queries, please contact:

Founder Group Limited
info@founderenergy.com.my

Investor Relations Inquiries:

Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com

FAQ

What is the value of Founder Group's (FGL) new floating solar farm contract in Malaysia?

Founder Group (FGL) secured a Letter of Award worth US$4.5 million (RM20 million) for the floating solar farm project in Kuala Langat, Selangor.

What is the power generation capacity of FGL's new floating solar project?

The floating solar farm project will generate 9.99MWac/15.033625MWp of solar power.

When is the completion date for FGL's Malaysia floating solar farm project?

The floating solar farm project is expected to be completed by June 30, 2025.

What is FGL's role in the Malaysian floating solar farm project?

Founder Group will serve as a sub-contractor, responsible for supplying labor, hand tools, materials, and necessary machinery for General Conditions Preliminaries & Consultation.

How large is FGL's new floating solar farm project in Malaysia?

The floating solar farm project spans approximately 24 acres in Kuala Langat, Selangor, Malaysia.