Beng Kuang Marine (BEZ) H2 2023 earnings summary

Executive summary

• FY2023 turnaround delivered net profit of S$7.92 million and continuing-operations profit before tax of S$10.82 million, versus a S$5.55 million loss in FY2022.

• Strategy centers on an asset-light, service-oriented model focused on two core divisions, cost minimisation and productivity improvements.

Financial highlights

• FY2023 revenue rose 33.9% to S$79.16 million from S$59.13 million; gross profit increased 98.9% to S$24.91 million.

• 2H revenue rose 57.2% YoY to S$47.31 million; EBITDA was S$15.67 million versus negative S$13.55 million in FY2022.

• Operating activities generated S$5.95 million of cash in FY2023.

Outlook and guidance

• FY2024 priorities include building on 2H2023 momentum, targeting offshore and marine growth, improving operating efficiency and asset utilisation, and focusing on high-growth IE and CP segments.

• Lower depreciation is expected following announced partial land sales and asset disposals; priorities include expanding recurring service income and customer reach.