KUALA LUMPUR (Sept 30): Cypark Resources Bhd (KL:CYPARK) booked its third consecutive quarterly net loss in its first quarter ended July 30, 2024 (1QFY2025), dragged mainly by unscheduled downtime at its waste-to-energy (WTE) plant in Negeri Sembilan.
The group posted a net loss of RM18.07 million or 3.24 sen per share in the quarter, from a net profit of RM305,000 in 1QFY2024. However, last year’s quarter also recorded losses per share of 0.46 sen, after coupon payments to its RM500 million perpetual sukuk holders.
Revenue rose 36.4% to RM49.82 million, from RM36.52 million, mainly on stronger contributions from its construction and engineering (C&E) segment.
The group's profit and loss statement showed it booked operating loss, dragged by a huge jump in administrative expenses to RM7.14 million from RM695,437 the year before. Cost of sales of RM50.03 million exceeded group revenue.
In the quarter, Cypark's finance costs rose to RM11.96 million, from RM10 million in the same quarter last year. The group had deferred the distribution for the RM235 million tranche 1 of its perpetual sukuk twice in March and in September.
Segment wise, the WTE segment posted RM15.22 million in pre-tax losses, ahead of the RM2.94 million loss recorded by its renewable energy segment, both contributing to its pre-tax loss of RM17.84 million. Meanwhile, its C&E segment’s pre-tax profit came in at RM1.05 million.
The rectification work at Cypark’s WTE plant is expected to be completed this month.
“The plant is expected to operate more efficiently, resulting in increased revenue from electricity generation. This upgrade will enhance operational capabilities and positively impact the overall profitability of the plant,” it said.
The group reiterates its target to commission 60 Megawatts (MW) of solar generation capacity in Kelantan by end-2024.
On future WTE project bids, Cypark is targeting a 15MW-25MW power generation capacity per project, with expected investment value of above RM500 million each.
Cypark shares traded unchanged at 66.5 sen on Monday, valuing the group at RM499.4 million. The counter is down nearly 30% this year.