Monday 22 Jul 2024
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KUALA LUMPUR (March 29): Cypark Resources Bhd has registered a net loss of RM27.7 million for its third quarter ended Jan 31, 2024 (3QFY2024) on revenue of RM35.89 million.

There are no comparative figures given that the group had changed its financial year end from Oct 31, 2022 to April 30, 2023.

Cypark said the net loss largely stemmed from losses recorded by its waste management and waste-to-energy (WTE) division due to adjustments made on amortisation on trade receivables. The amortisation was readjusted to a concession term basis that was consistent with the prior year amortisation.

"The total adjustment of RM21 million amortisation expenses was adjusted accordingly," the group said in its bourse filing.

The waste management and WTE division recorded a loss before tax of RM36.7 million for the quarter, while its revenue totalled to RM14 million. The group said the revenue generated from the division included the sale of green energy from its completed integrated WTE plant, tipping fees and recycling revenue.

Cypark said its renewable energy (RE) segment chalked up revenue of RM17.9 million which came from brownfield projects. Its profit before tax came up to RM200,000, which included an impairment of trade receivables amounting to RM1.5 million.

The construction and engineering division, meanwhile, made a revenue of RM2.8 million and profit before tax of RM200,000 for the quarter, while the green tech and environmental services division contributed a revenue of RM1.2 million but registered a loss before tax of RM300,000 which the group said was mainly due to an adjustment in depreciation expenses.

Going forward, Cypark said it is proactively identifying expansion and diversification opportunities in the industry as it seeks to realise its target of reaching a capacity goal of 800MW by 2027.

“Our priority lies on RE [renewable energy] businesses including large scale solar power, biogas, biomass and WTE projects which will enable us to tap into clean and sustainable energy sources while we continue to play our significant role in decreasing greenhouse gas emissions,” it said.

It added that it is looking for ways to expand its reach in RE in both the local and international space, which could take the form of collaboration with state-owned entities.

Cypark will also continue to focus on its WTE segment, it said, as the government focuses on green economy, recycling of waste and implementing a circular economy towards a more sustainable future for Malaysians as part of the National Energy Transition Roadmap.

“Cypark plans to actively participate in future WTE tenders that were announced by KPKT [Housing and Local Government Ministry] under its national WTE implementation plan. Cypark expects future WTE plant capacity to be between 15MW and 25MW with an expected investment value of above RM500 million each,” it added.

On Friday, the counter closed half a sen higher at 91.5 sen, up by 0.55% from the previous trading day. Cypark is valued at RM752.9 million.

Edited ByS Kanagaraju
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