Beng Kuang Marine (BEZ) Q1 2023 TU earnings summary

Executive summary

• Continuing-operations revenue declined 6.5% YoY to S$13.44m, while gross profit rose 26.4% to S$3.18m; excluding currency translation losses, continuing operations recorded a S$0.22m profit.

• Performance was supported by ASOM service growth and recurring corrosion-prevention demand; Batam property sale and lease agreements add monetisation and recurring-income opportunities.

Financial highlights

• Revenue was S$13.44m versus S$14.37m in 1Q2022, down 6.5%; gross profit increased to S$3.18m from S$2.55m, up 26.4%.

• Continuing-operations loss before income tax narrowed to S$0.07m from S$0.25m in 1Q2022.

• Excluding S$0.29m of currency translation losses, continuing operations posted a S$0.22m profit versus a S$0.20m loss in 1Q2022 on the same basis.

Outlook and guidance

• Order book stood at approximately S$24m as at 31 March 2023.

• Batam property lease income is expected to contribute positively in FY2023; leases commenced or are scheduled to commence in February and June 2023.