The group’s ebitda declined 58.8% y-o-y to $5.06 million in 1QFY2025.
Revenue similarly declined 16.6% y-o-y to $23.9 million in 1QFY2025, and gross profit declined 11.3% y-o-y to $8.7 million in the reporting period.
The decline in revenue is due to the group’s infrastructure engineering (IE) division experiencing some delays in the commencement of some floating production storage and offloading (FPSO) projects.
This is due to logistical and administrative issues in one of its key operating markets within Africa, the group says. The contracts of the group’s deck equipment business are scheduled to commence in 2Q2025.
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Beng Kuang’s corrosion prevention (CP) division reported lower revenue due to the timing of work assignments in 1QFY2025.
“While our business activities experienced delays due to the timing of project execution, the group continued to deliver profitability with healthy cash flow. Our strong operational fundamentals and disciplined financial management position us well to navigate near-term challenges and we remain confident of the group’s overall momentum moving forward,” says Yong Jiunn Run, CEO of Beng Kuang Group.
Shares in Beng Kuang closed 0.1 cents higher or 0.524% up at 19.2 cents on May 7.
