KUALA LUMPUR (Dec 31): Cypark Resources Bhd's net profit for the fourth quarter ended Oct 31, 2020 (4QFY20) rose 31.9% to RM21.3 million from RM16.15 million in the previous quarter ended July 31, as site progress of its existing projects started to catch up after the total suspension of works during the movement control order (MCO) and conditional MCO (CMCO) period.
Revenue climbed 46.69% to RM81.69 million from RM55.69 million, the integrated renewable energy and environmental engineering solutions provider’s stock exchange filing showed.
Year on year, however, its net profit is down 45.19% from RM38.87 million in 4QFY19, while revenue fell 18.06% from RM99.7 million, which it said was due to compliance to the MCO and CMCO, which took effect in March 18 till June 6, and restrictions imposed on work activities during the recovery MCO that continues to be in effect until the end of the 2020.
For the full year of FY20, net profit fell 22.7% to RM70.56 million from RM91.28 million a year ago, while revenue declined 19.3% to RM304 million from RM376.74 million.
"Despite the drop in overall financial results for 4QFY20, revenue for the green tech and renewable energy division for current quarter under review has increased by 11.6% to RM65.8 million, as compared to RM59.0 million recorded in 4QFY19. This was mainly contributed by the revenue recognised from the two new solar plants and new specialist projects secured within this division," Cypark said in a statement.
Cypark group chief executive officer Datuk Daud Ahmad said the group expects further 2021 to be a recovery year for the group, with contributions from LSS2 EPCC projects, which were delayed this year due to MCO.
As for Cypark 170 MWp LSS3 project in Merchang, it will commence construction in January 2021 and is expected to be completed by the end of 2021, he said.
“Cypark is optimistic about its chances in the LSS4 tender, which closed in September 2020. We are hopeful LSS4 will bring further cheers to Cypark, once the result is announced early next year by [the] Energy Commission.
“With the government’s proposed market liberalisation measures under the Malaysian Electricity Supply Industry 2.0, Cypark is actively looking for opportunities to supply RE directly to end-clients via Peer-To-Peer and Third-Party Access initiatives. Cypark has recently participated in the trial run of Third-Party Access, and the progress has been very encouraging so far. Once the government is ready to implement the proposal, Cypark targets to increase its total RE capacity under its operations by up to 400MW in the next few years and subsequently, further expanding our client base,” Daud said.
Furthermore, he said Cypark will strengthen its capability by taking advantage of the above success factors to ensure sustainability of its revenue and profitability growth since 2012.
“Our Waste-to-Energy (WTE) plant in Ladang Tanah Merah Negeri Sembilan is expected to be in commission by the middle of 2021, which will also potentially uplift our financial results from 2021 onwards," Daud said, adding that the group is now bidding for more WTE projects in the country.
Cypark shares closed three sen or 2.17% higher at RM1.35 today, with some 2.83 million shares done. This gave it a market capitalisation of RM656.58 million.