KUALA LUMPUR (Sept 30): Cypark Resources Bhd has posted a net profit of RM16.68 million for the third quarter ended July 31, 2021 (3QFY21), 3.3% higher than RM16.15 million in the same period last year but down 7.3% from RM18 million in the preceding quarter.

Revenue rose 18.3% to RM65.92 million from RM55.69 million last year, and falling 23.3% from RM86 million quarter-on-quarter.

For the cumulative nine months of FY21, the group recorded a net profit of RM49.7 million against RM49.2 million the year before, while revenue came in 2.7% higher at RM228.4 million.

In a bourse filing, the environmental engineering outfit attributed the improved year-on-year performance to the continuous work progress from its large-scale solar projects as well as specialist and consultancy works performed in the current quarter.

“In line with the increase in revenue, the profit before tax for current financial period also increased by RM2.5 million or 4% to RM65.4 million compared with RM62.9 million recorded in the preceding financial period.

“The increase in profit was mainly due to the saving in the interest cost achieved through the conversion of certain conventional financing to issuance of perpetual sukuk and lower borrowing rates resulting from the cutting of overnight policy rate by Bank Negara Malaysia.

“In addition, the profit recorded in the preceding financial period was lower partly due to the recognition of an employee share option scheme expense of RM2.1 million in the previous financial period. The improvement in the group’s net profit was due to additional deferred tax expense recognised in the current financial period for [our] waste-to-energy project,” the group said.

Cypark projected renewable energy (RE) demand to grow at a healthy rate with the government’s December 2020 Net Energy Metering 3.0 (2021 to 2021) announcement, in which a quota of 300MW out of 500MW will be provided to commercial and industrial players.

“RE players can also benefit from the extension of Green Investment Tax Allowance (GITA) and Green Income Tax Exemption (GITE) incentives until 2023 and the Green Technology Financing Scheme (GTFS) 3.0 with a fund size of RM2 billion until 2022,” the group said.

Cypark said it has taken pre-emptive steps to endure the economic impact of the Covid 19 pandemic by successfully completing the vaccination programme for all staff and their spouses in August and is looking forward to operating in full force when 100% working capacity is allowed.

Shares of Cypark closed at 96 sen, a level where the stock has been since hitting a 21-month high of RM1.66 on March 1, to value the group at RM542.39 million.