Federal International (2000) (BDU) investor relations material

Executive summary

• H1 revenue rose 47.8% YoY to S$79.7m, but gross profit fell 46.2% to S$6.3m as lower-margin trading sales compressed gross margin to 7.9% from 21.7%.

• Profit net of tax fell to S$23k from S$3.1m; total comprehensive loss was S$6.8m, largely reflecting a S$7.1m FVOCI fair value loss.

Financial highlights

• PBT was S$75k versus S$3.65m; owners’ net profit was S$29k versus S$2.48m, and basic EPS was 0.02 cents versus 1.76 cents.

• Other operating expenses were S$441k, mainly a S$221k PTG disposal loss and S$145k FX loss; prior-year expenses of S$2.43m mainly reflected a S$2.48m FX loss.

• Finance costs fell to S$213k from S$290k; income tax expense fell to S$52k from S$573k.

Outlook and guidance

• H2 performance will depend on customer demand and delivery schedules, which affect the sales mix; management is pursuing suitable opportunities to improve performance.

• Oil and gas activity, particularly in Vietnam, remains resilient, while geopolitical tensions and trade-policy changes could affect trading activity and costs.