NST Business
KUALA LUMPUR: Cypark Resources Bhd (CRB) revenue for the second quarter (Q2) ended 30 April 2020 (FY20) decreased RM25.7 million or 25.3 per cent to RM75.8 million as compared to RM101.4 million same quarter last year.
The drop in revenue was attributed to the suspension of on-site work activities from the Environmental Engineering as well as Landscaping and Infrastructure divisions due to the Movement Control Order (MCO) imposed by the government from March 18.
Net profit decreased by 4.3 per cent or RM0.8 million to RM18.5 million from RM19.3 million recorded in Q2 FY19.
The impact to net profit was minimal despite the decrease in revenue for Q2 FY20, attributed to higher margins contribution generated from interest components of some projects on the adoption of MFRS15 since 2019 and from new specialist projects secured in the current quarter.
"We believe that the prospects and outlook for renewable energy remains good despite the immediate challenges from the COVID-19 pandemic.
"During the MCO period, our electricity and landfill operations continued as usual as it comes under essential services while the environmental engineering projects were suspended until the recovery MCO was announced. We expect these projects to continue to contribute positively," Cypark group chief executive officer Dato' Daud Ahmad said in a statement.
Cypark has been a pioneer developer and provider in integrated renewable energy, green technology, environmental engineering solutions, and construction engineering.
For the six months (1H) ended 30 April 2020, revenue decreased 12.2 per cent or RM23.2 million to RM166.6 million compared to RM189.9 million recorded previous year.
However, net profit increased by 2.2 per cent or RM0.7 million to RM33.1 million compared to RM32.4 million last year.
"The government recently announced tender for 1,000 MWac Large Scale Solar 4 (LSS4) programme to be implemented by end-2020 is a clear sign of renewable energy's strong and robust growth.
"Beyond Malaysia, we see a trend of sustainable growth for renewable energy and an increasing appetite for new tenders from Singapore, Brunei and Thailand that we are keen to participate in," Daud Ahmad said.
He said Cypark is also at a distinct advantage in bidding for and winning one of the upcoming tenders for waste-to-energy (WTE) plants in Melaka, Kedah and Johor during the 2020-2021 period as the company is the first and only WTE developer and operator in Malaysia.
/end