Beng Kuang Marine (BEZ) Q3 2024 TU earnings summary

Executive summary

• Returned to profitability in 3Q2024, with revenue and gross profit growth led by Infrastructure Engineering (IE) and higher 9M2024 earnings.

• Continued an asset-light, service-centric shift focused on IE and Corrosion Prevention (CP), monetising fixed assets and reducing borrowings.

Financial highlights

• 3Q2024 revenue S$26.77m, up 25.1% YoY; gross profit S$9.47m, up 23.9%; gross margin 35.4% vs. 35.7%; PBT S$3.79m, up 27.2%.

• 9M2024 revenue S$86.69m, up 62.8% YoY; gross profit S$30.73m, up 91.7%; gross margin 35.4%, up 5.3 percentage points.

• 9M2024 PBT S$20.83m, up 400.6% YoY; EBITDA S$23.71m, up 200.1%; generated S$7.41m net cash from operating activities.

Outlook and guidance

• IE demand for asset integrity services supporting FPSOs and FSOs remained robust; redeployment initiated in late September is expected to mitigate the 3Q impact of a customer accommodation barge dry-docking in Africa.

• Priorities include operational excellence, cost and operating efficiency, stronger client relationships, expanded capabilities, and new revenue streams.

• IE is targeting new customers and markets, including India and the Middle East, for pedestal cranes and deck equipment.