Cypark Resources Berhad reported its 2Q FY2024 results recording a total revenue of RM55.3 million which the group was primarily driven by the renewable energy division and waste management & waste-to-energy division. Profit after tax came in at RM992,000, the revenue streams, predominantly recurring in nature, have contributed to a diverse and stable income.
Moving ahead the group said the transition of secured LSS2 projects from the construction phase to the Operation & Maintenance phase will further enhance the Group’s revenue streams. Revenue from these projects, spanning the next 21
years, promise consistent and sturdy inflows, reinforcing the Group’s financial stability over the long term.
Accordingly, the Group reported an operating profit of RM7.9 million in the current quarter. Lower tax expense was recorded in current quarter due to the lower tax provision for tax-exempted projects and lower construction revenue generated as well as the deferred tax movement. The Group’s profit after tax for 2Q2024 was recorded at RM1 million
For the two quarters combined, the group’s revenue was recorded at RM91.8 million for the current financial period. Moving forward, the secured LSS2 projects will transition from the construction phase to the O&M phase. These projects it said will continue to contribute different revenue streams to the Group, including interest revenue and O&M revenue. Both interest
revenue and O&M revenue are recurring income for the next 21 years, with varying quantum but a solid margin.
The total inflows from these secured contracts will contribute positively to the Group in the long term. The group has recorded a profit after tax of RM1.6 million for the current financial period. This was mainly attributable to a lower tax expense recorded due to a lower tax provision for tax-exempted projects and lower construction revenue, as well as the recognition of deferred tax assets.
With the Malaysian Government’s agenda to boost the RE proportion of the country’s total energy mix, the industry is transforming and rapidly growing. Cypark has anticipated various opportunities as well as challenges with the forthcoming expansion such as the potential increase in the number of industry players which may create competition
