Beng Kuang Marine (BEZ) Q1 2024 TU earnings summary

Executive summary

• 1Q2024 revenue rose 113.1% YoY to S$28.63m and gross profit increased 208.0% to S$9.79m; PBT of S$11.32m exceeded FY2023 PBT of S$10.82m.

• Results reflected organic growth in Infrastructure Engineering (IE), alongside a S$5.83m one-time gain from a Batam property sale completed in January 2024.

• The service-centric, asset-light strategy remains focused on IE and Corrosion Prevention (CP), cost efficiency, asset monetisation and prudent capital management.

Financial highlights

• Revenue reached S$28.63m, up 113.1% YoY and 10.5% QoQ; organic growth was attributed to IE business momentum.

• Gross profit rose 208.0% YoY to S$9.79m and 10.3% QoQ; cost-minimisation and productivity measures supported improvement.

• PBT was S$11.32m, versus a S$0.07m loss in 1Q2023; the result included a S$5.83m one-time Batam property-sale gain.

• EBITDA increased 907% YoY, or S$11.04m, and 58% QoQ, or S$4.49m.

Outlook and guidance

• Continue executing an asset-light, service-oriented model anchored by IE and CP, with a focus on sustainable growth and stronger value propositions.

• Priorities include expanding service offerings, developing new revenue streams, pursuing strategic partnerships and improving cost and operating efficiency.

• Explore Batam yard opportunities and partnerships, while developing existing and new markets including the Middle East, India and Indonesia.