ASL Marine Holdings (A04) Q3 2024 TU earnings summary

Executive summary

• 9M FY2024 revenue rose 13.1% YoY to $270.1m, with net profit of $5.4m versus a $6.8m loss; 3Q revenue fell 10.6% and net profit declined 73.3% to $3.8m.

• 9M adjusted EBITDA increased 58.2% to $65.1m, supported by stronger shiprepair and chartering contributions; shipbuilding remained pressured by tanker cost overruns.

Financial highlights

• 3Q FY2024 revenue was $91.4m, down 10.6% YoY; 9M revenue increased $31.2m YoY, mainly from higher shiprepair and shipchartering contributions.

• 9M gross profit rose to $35.6m from $14.8m, with gross margin of 13.2% versus 6.2%; 3Q gross profit was $10.3m, with margin of 11.3% versus 13.2%.

• 9M PBT was $11.2m versus a $5.0m loss; excluding prior-year loan and bond amortisation, PBT was $21.6m versus $4.9m. 3Q PBT was $5.9m versus $14.9m, or $9.3m versus $18.2m excluding amortisation.

• 9M EPS was 0.84 cents versus a loss of 1.11 cents; 3Q EPS was 0.61 cents versus 2.22 cents YoY.

Outlook and guidance

• Focus remains on core shipbuilding, shiprepair and shipchartering, with priorities including sustainable revenue, operational efficiency, productivity and improved performance.

• Shipbuilding focus is on standard tugs, barges and workboats with shorter delivery cycles and lower capital intensity; a second floating dock is being deployed at the Singapore yard.

• Chartering demand is expected from marine infrastructure, oil and gas, offshore renewables and bulk cargo transhipment; plans include better fleet utilisation, cost control and vessel renewal or disposal.