Cypark Resources Berhad has announced a total revenue of RM304.0 million for FY2020. The company’s both profit before tax (PBT) and profit after tax (PAT) was at RM92.68 million and RM71.66 million, respectively. Even in the face of an outbreak, Cypark achieved a commendable result throughout 2020.
In retrospect, the company had gone through a decline in Q4 which ended on Oct 31, 2020. To compare with Q4 2020, Cypark recorded a loss of 43.4 percent PBT and 42.2 percent PAT. Meanwhile, the recorded loss in Q4 2019 was at 18.1 percent.
Cypark’s significant drop was due to the decrease in work activities during the Movement Control Order (MCO) and Conditional Movement Control Order (CMCO).
Despite the drop in overall financial results for Q4 2020, the revenue for the green tech and renewable energy division has increased by 11.6 percent as compared to Q4 2019. The increase was due to two new solar plants and new specialist projects by the company.
However, the environmental engineering, landscaping and infrastructure, maintenance divisions contributed to the drop in revenue for Q4 2020.
Cypark’s group chief executive officer (GCEO), Daud Ahmad hailed his team for their perseverance in managing the projects despite the outbreak. “The cooperation and dedication shown by the team have been key to ensure the sustainability of the business in the harsh year of 2020.”
He added that the results validated the robust business strategy of focusing on the Green and Renewable sector. Despite the drastic changes that Covid-19 has brought, it was a good year for Cypark’s renewable energy division.
Daud Ahmad insisted the new projects that were delayed by the outbreak, like the LSS2 EPOC projects, LSS3 in Terengganu, and LSS4 which the tender was closed in Sept 2020, can be optimised to boost the revenue in the division.
“The key success factors for Cypark can be contributed to the three underlying factors which are more attractive government policies on renewable energy, continued development of a more affordable and efficient green technology globally, also a dynamic market mechanism,” the GCEO said.
With Budget 2021 allocation of RM2 billion for green technology, Cypark will focus on financing tax break assistance for all types of green project and not just renewable energy. In addition, the company is adequately funded from competitive commercial financing.