KUALA LUMPUR (June 29): Cypark Resources Bhd (KL:CYPARK) remained in the red for the fourth consecutive quarter, as higher finance costs, administrative expenses and depreciation charges outweighed stronger revenue.

The renewable energy group posted a net loss of RM16.83 million for the fourth quarter ended April 30, 2026 (4QFY2026), compared to a net profit of RM993,000 a year earlier, despite revenue surging 151.8% to RM48.11 million from RM19.11 million, according an exchange filing on Monday.

Finance costs rose 46.4% to RM15.59 million from RM10.65 million, while administrative expenses increased to RM8 million from RM6.17 million. Depreciation and amortisation charges also climbed to RM25.1 million from RM22.05 million.

Cypark said its renewable energy segment continued to deliver stable growth, with revenue rising 4.7% to RM31.3 million from RM29.9 million, driven by stronger electricity generation at its Large Scale Solar 3 (LSS3) plant in Merchang following capacity expansion and plant optimisation initiatives.

Its brownfield solar assets under the Feed-in Approval Holder (FiAH) scheme also generated higher output after operational improvements.

However, the segment swung to a loss before tax of RM7.4 million from a profit before tax of RM32.3 million a year earlier. The prior year's earnings were boosted by a RM29.6 million one-off reversal of liquidated ascertained damages.

Excluding the one-off gain, the segment would have posted an underlying profit before tax of RM2.7 million in 4QFY2025, compared to the current quarter's RM7.4 million loss. The decline was mainly due to higher manpower-related administrative expenses, increased financing costs following the group's refinancing exercise and redemption of the first tranche of its perpetual sukuk, as well as higher depreciation arising from the expanded LSS3 plant.

Cypark noted that depreciation remained a significant non-cash expense reflecting investments in long-term renewable energy assets that underpin future cash flow generation.

Meanwhile, the circular waste and waste-to-energy (WtE) segment reported a profit before tax of RM24.7 million, although this included a RM39 million one-off reversal of impairment on intangible assets. Excluding the exceptional item, the segment recorded a normalised loss before tax of RM14.3 million, an improvement from RM22.2 million a year earlier.

Revenue for the segment nearly doubled to RM16.4 million from RM8.6 million, supported by higher electricity generation, revised tipping fees and increased waste processing volumes. Cypark said the year-on-year comparison was also affected by a RM5.7 million reversal of accrued revenue recognised in the corresponding quarter last year, which had reduced reported revenue.

For the full financial year, Cypark's net loss widened sharply to RM67.94 million from RM6.04 million in FY2025, although revenue rose 13.5% to RM179.18 million from RM157.82 million.

The operating cash flow improved to RM128.77 million from RM70.23 million, while net cash used in investing activities increased to RM37.96 million from RM26.16 million as the group continued investing in its assets.

Cash used in financing activities amounted to RM210.06 million, mainly due to the redemption of its sukuk, resulting in a net decrease in cash and cash equivalents of RM119.24 million during the year. The group ended FY2026 with RM33.58 million in cash.

Looking ahead, Cypark said it is entering FY2027 with stronger earnings visibility, underpinned by stable recurring income, a RM2.7 billion engineering, procurement, construction and commissioning (EPCC) order book, active tender opportunities and supportive government policies for renewable energy and WtE projects.

Management said its priorities for FY2027 include executing key projects such as the Kenyir Hybrid Hydro Floating Solar project and SMART WtE Phase 2, securing new contracts, improving cost efficiency and strengthening the group's balance sheet.

"Barring unforeseen circumstances, the board remains optimistic about the group's turnaround prospects as Cypark moves into its next phase of growth, driven by stronger recurring income, increasing EPCC contributions and improved operational scale," it said.

Cypark shares closed one sen or 1.5% lower at 67 sen on Monday, giving the group a market capitalisation of RM551.3 million. The stock has fallen 27.2% over the past 12 months.