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Cypark 2Q21 profit slips 2.5% as MCOs slow down work progress

KUALA LUMPUR (June 30): Cypark Resources Bhd net profit for its second quarter ended April 30, 2021 (2QFY21) slid 2.55% to RM18.03 million from RM18.5 million a year ago, as a slowdown in its consecution and engineering division more than offset the additional work progress recognised from its waste-to-energy (WTE) projects.

Quarterly earnings per share slid to 3.12 sen from 3.97 sen in 2QFY20, Cypark filing showed. The group also experienced higher renewable energy (RE) project costs in the quarter, it said.

The weaker bottom line came despite revenue jumping 13.49% to RM85.97 million from RM75.75 million, as the RE segment saw improved work progress for Large Scale Solar projects, coupled with a significant jump from its WTE segment.

The performance of the RE and WTE segments compensated for the poorer earnings of the construction and engineering division, as well as the slight decline in the green tech and environmental services division.

For the six-month period ended April 2021 (6MFY21), Cypark net profit slid 0.11% to RM33.02 million from RM33.05 million, on the back of deferred tax recognition for the WTE division, which more than offset the interest costs savings it incurred in the period.

Revenue in the period was down 2.5% to RM152.45 million from RM166.63 million, mainly due to slowdown in work activities amid the various Movement Control Orders imposed.

On prospects, the group is expecting to secure up to 20% of the tenders submitted in relations with net-energy metering tenders from universities and government-linked companies that it has participated in.

Shares of Cypark rose one sen or 1.09% today to close at 93 sen, valuing the renewable energy group at RM458.06 million.

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