Beng Kuang Marine (BEZ) Q3 2023 TU earnings summary

Executive summary

• 9M2023 continuing-operations revenue rose 21% YoY to S$53.25 million; IE and CP remained the core growth drivers.

• Turnaround momentum strengthened in 3Q2023, supported by higher gross profit and a shift to positive adjusted EBITDA.

Financial highlights

• Revenue increased 44% YoY to S$21.40 million in 3Q2023 and 21% to S$53.25 million in 9M2023.

• Gross profit rose 243% YoY to S$7.64 million in 3Q2023 and 117% to S$16.03 million in 9M2023.

• Adjusted EBITDA was S$2.51 million in 3Q2023 and S$7.40 million in 9M2023, versus losses of S$1.85 million and S$0.87 million, respectively, in 2022.

Outlook and guidance

• Strategy centers on an asset-light, service-oriented model, monetising fixed assets and deleveraging while expanding recurring revenue streams.

• IE aims to broaden customer reach and service capabilities, targeting marine and offshore opportunities, including new-build work.

• Deck-equipment operations are pursuing new customers and markets, including India and the Middle East, amid increased pedestal-crane orders.