There have been concerns over the company’s cash flow and high gearing. The negative cash flow is expected from the business model of concessionaire-based projects like solar farms and WTE (waste-to-energy), which require intensive capital expenditure (capex) upfront. (For a more detailed explanation, please refer to the explanation in our Cash Flow Statement of 1Q2022.) The stable cash flow track record of the completed solar farms over many years has given a lot of comfort to lenders as certainty and reliability of cash flow is high. The recognition and reporting of the WTE project cost and revenue require compliance with the prevailing accounting standards.
Source: The Edge Markets June 21, 2022 18:24 UTC