Beng Kuang Marine has reported earnings of $11.5 million for the FY2024 ended Dec 31, 2024, up 237% y-o-y from the $3.4 mil reported in the same period a year ago.
The offshore and marine services company reported earnings per share of 5.79 cents, up 237% y-o-y for the FY2024.
For the 2HFY2024, earnings came in 30.5% y-o-y lower at $2.97 million, down from the $4.28 million in the same period a year ago.
The company saw a 41.3% y-o-y increase in revenue for the FY2024 or $111.9 million, and a 9.8% y-o-y increase in revenue for the 2HFY2024 to $52.0 million.
Gross profit came in 55.5% y-o-y higher for the FY2024 at $38.7 million, while for the 2HFY2024 it increased by 5.8% y-o-y to $17.5 million.
As such, the FY2024 gross profit margin increased by 3.1 percentage points to 34.6 from 31.5 in the same period a year ago.
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The group says that its strategy towards an asset-light and service oriented business model has gained good momentum with two core business divisions, infrastructure engineering (IE) and corrosion prevention (CP).
Driven by strong demand for the group’s asset integrity solutions and services for operating floating assets such as its floating production storage and offloading unit (FPSO) and its floating storage and offloading unit (FSO), the group saw IE organic revenue growth of 60.3% y-o-y to $91.43 million from $57.03 million a year ago.
The group says that its improvement of gross profit margin comes from rationalising and streamlining initiatives, together with the exit of the group’s loss-making business operations.
It recognised a one-off gain of $5.51 million from second partial land sale during FY2024.
The group has proposed a dividend of 0.6 cents per ordinary share.
“Supported by strong organic growth, our business performance highlights the strength of our core competencies in the global offshore and marine industry. Firmly backed to profitability with a strengthened balance sheet, we are pleased to reward shareholders with dividends, underscoring our confidence in the company’s financial stability,” says CEO of Beng Kuang Marine Group, Yong Jiunn Run.
Shares in Beng Kuang Marine closed 0.5 cents lower or 1.961% down at 26 cents on Feb 19.
