Beng Kuang Marine (BEZ) Q1 2025 TU earnings summary

Executive summary

• 1Q2025 remained profitable despite project timing delays; revenue fell 16.6% YoY to S$23.89m and profit before tax was S$4.18m.

• Operating cash flow was S$3.89m; management expects momentum to pick up from 2Q2025 as delayed work and deck-equipment contracts commence.

Financial highlights

• Revenue was S$23.89m, down 16.6% YoY; gross profit was S$8.69m, down 11.3% YoY.

• Other gains were S$0.39m versus S$6.431m in 1Q2024; profit before tax fell 63.1% to S$4.18m and EBITDA fell 58.8% to S$5.06m.

• Higher gross margin reflected improved cost management and productivity, partly offsetting lower revenue.

Outlook and guidance

• Momentum is expected to improve from 2Q2025 as delayed FPSO project activity and deck-equipment contracts begin.

• A healthy pipeline of projects supporting FPSO operations could increase the number of fleets under management; outlook is subject to unforeseen circumstances.

• A US$4.9m deck-equipment contract was secured; opportunities are being pursued in Brazil and Malaysia.