by SHAHEERA AZNAM SHAH / graphic by TMR

CYPARK Resources Bhd is expected to enhance the services provided under its renewable energy (RE) segment to further expand the group’s client base.

It targets to increase the total RE capacity under its operation to 300MW and 400MW in the next few years through the government’s Malaysian Electricity Supply Industry (MESI) 2.0 initiative.

“With the government’s proposed market liberalisation measures under MESI 2.0, Cypark is actively looking for opportunities to supply RE directly to end-clients via Peer-To-Peer and Third-Party Access initiatives.

“Cypark has recently participated in the trial run of the Third-Party Access, and the progress so far has been very encouraging. Once the government is ready to implement the proposal, we will increase our RE capacity,” it said in a statement recently.

Cypark is anticipating a further energy market reformation and liberalisation in the country based on the Malaysian market trend in 2019, which supports the growth of RE and green technology.

“With the government’s unwavering commitment towards the Paris Agreement and the implementation of MESI 2.0 to achieve 20% RE target by 2025 and energy market liberalisation, the growth of Malaysia’s energy industry is anticipated,” it said.

The group also anticipates a better growth prospect for the sector due to heightened demand in green and sustainable energy which will increase the large scale solar (LSS) projects and tenders by two fold.

“With the fact that the current LSS3 solar cost is lower than the average cost of gas-based energy generation, it encourages the government of Malaysia to further develop the solar sector.

“A similar trend in other South-East Asia countries such as Thailand, Singapore and Vietnam has provided Cypark with additional opportunities to expand its market presence in the region,” it said.

Globally and locally, the demand for RE is expected to continue to grow stronger and exceed the growth of fossil-based energy, contributing up to 30% of all energy generation in 2040 from the 8.5% recorded in 2017.

According to the International Energy Agency 2019 report, solar and wind-based energy will make up 50% of new world energy. Solar energy growth has shown a 17.5% growth compared to 2018.

For its fourth quarter ended Oct 31, 2020, Cypark recorded a lower net profit of RM21.3 million against RM38.9 million posted in the corresponding period last year on lower revenue.

Its revenue for the quarter decreased to RM81.7 million compared to RM99.7 million last year. Its earnings per share (EPS) fell to 4.58 sen from 8.44 sen.

The group attributed the lower revenue and profit to the decrease in work activities due to the total suspension of work activities from March 18, 2020, to June 9, 2020, as a result of complying with the Movement Control Order (MCO) and Conditional MCO.

For Cypark’s financial year 2020 (FY20), its net profit stood at RM70.56 million against RM91.28 million last year, while revenue declined to RM304 million from RM376.74 million.

Its EPS fell to 15.16 sen in FY20 from 19.82 sen in FY19.