Beng Kuang Marine has reported a 65.8% y-o-y lower earnings for the 1HFY2025 ended Aug 6 of $2.93 million.
This is a slight decrease from the $3.05 million reported in 1HFY2024 excluding the one-off gain of $5.51 million from the partial yard disposal in Batam last year.
Revenue for the period came in 15.2% y-o-y lower at $50.8 million, and net profit for the period declined 52.2% y-o-y to $6.88 million.
The group says that this revenue decline is due to a slower start to the year, particularly in its Infrastructure & Engineering (IE) division, which faced delays in project execution and lower-than-expected contract commencements.
Its IE division in Africa & Guyana saw delayed contract execution. Despite this, the group says its outlook remains positive, driven by rising demand for offshore in-situ services for FPSO vessels and the group’s expansion into Latin America.
The group’s cost of sales declined by 18.9% y-o-y $31.37 million in 1HFY2025, but this reduction outpaced the decrease in revenue and was largely driven by a corresponding decline in cost of sales in line with the overall revenue contraction; enhanced cost control measures and productivity improvements across key business units; and strategic restructuring initiatives and cost optimisation efforts undertaken in recent periods, which have begun to yield tangible results in operational efficiency and project execution.
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As a result, gross profit margin improved to 38.23% in 1HFY2025.
The group’s cash and cash equivalent as at June 30 stood at $2.49 million. Net cash used in financing activities for the quarter totaled to $5.12 million mainly consisting of partial repayment of bonds, net repayment of bank borrowings, dividend distributions, among others.
As at June 30, the group’s current assets increased to $64.48 million.
Shares in Beng Kuang Marine closed flat at 25.5 cents on Aug 6.
