KUALA LUMPUR (Dec 31): Cypark Resources Bhd (KL:CYPARK) has returned to profitability with a net profit of RM2.28 million for the second quarter ended Oct 31, 2024 (2QFY2025). 

Compared to a year ago, the group’s net profit more than doubled from RM992,000. The increase in earnings was mainly due to a RM30.09 million one-off reversal on a provision that had been made previously, its bourse filing showed.

Previously, the group incurred a net loss of RM27.98 million in 3QFY2024, followed by RM57.92 million in 4QFY2024 and RM18.07 million in 1QFY2025.

Cypark said it is proactively identifying expansion and diversification opportunities in the renewable energy sector.

This includes the engineering, procurement, construction and commissioning (EPCC) of a 500 megawatt (MW) floating solar plant in Kenyir.

“Given the huge commitment required for the project, the group will be partnering reputable EPCC players to participate in the bidding exercise,” it added. 

In the quarter, finance costs jumped 84% to RM15.18 million in 2QFY2025 from RM8.25 million previously. 

Quarterly revenue, meanwhile, fell 11% to RM49.15 million from RM55.28 million, mainly attributed to lower revenue recognition from its hospital construction project, which is reaching completion.

For the six months of FY2025, it logged a net loss of RM15.79 million against a net profit of RM1.3 million a year ago, while revenue increased by 7.81% to RM98.97 million from RM91.8 million a year before.

The group registered total borrowings of RM1.56 billion as at end-Oct 2024.

Cash and cash equivalents fell to RM170.27 million from RM289.12 million during the same period last year. 

On future waste-to-energy (WTE) project bids, Cypark is targeting a 15MW to 25MW power generation capacity per project, with expected investment value of above RM500 million each.

Cypark’s shares closed up half sen or 0.58% to 86 sen on Tuesday, valuing the group at RM712 million. Year-to-date, the counter is down 8.5%.