KUALA LUMPUR (June 26): Cypark Resources Bhd’s net profit for the second quarter ended April 30, 2020 fell just 4.34% to RM18.5 million versus RM19.34 million previously, despite revenue falling 25.32% to RM75.75 million from RM101.43 million a year ago.

Earnings per share (EPS) dipped to 3.97 sen from 4.24 sen as a result, according to a bourse filing.

In a statement today, the integrated renewable energy and environmental engineering solutions provider said the lower revenue was due to the suspension of on-site work activities of its environmental engineering as well as landscaping and infrastructure divisions as a result of the Movement Control Order (MCO) period.

However, despite the lower revenue, the impact to net profit was minimal thanks to higher margins contribution generated from interest components of some projects on the adoption of MFRS15 since 2019 as well as new specialist projects secured in the quarter under review.

For the six-month period, net profit rose 2% to RM33.05 million from RM32.35 million, though revenue fell by 12% to RM166.63 million compared with RM189.87 million previously.

EPS was maintained at 7.09 sen.

Cypark group chief executive officer Datuk Daud Ahmad said he believes 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,” he said.

He added that the Malaysian government’s 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.

“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 we are the first and only WTE developer and operator in Malaysia,” said Daud.

Cypark shares were unchanged and settled at 98.5 sen today for a market capitalisation of RM453.24 million.