BH Global (BQN) H1 2023 earnings summary

Executive summary

• 1H2023 revenue increased 14% YoY to $29.1m, while profit for the period fell 20% to $1.0m, reflecting higher operating expenses and a less favorable impairment comparison.

• Operating cash flow recovered to $3.8m from a $1.6m outflow in 1H2022; borrowings declined to $7.4m from $8.3m at FY2022 year-end.

Financial highlights

• Revenue rose 14% to $29.145m; gross profit increased 7% to $11.927m.

• Profit before tax decreased 18% to $1.471m; profit for the period fell 20% to $1.003m.

• Selling and distribution expenses rose 9% to $6.815m and administrative expenses rose 11% to $4.071m; finance costs increased 18% to $334k.

• Impairment loss on financial assets was $32k, versus a $616k reversal in 1H2022; share of JV results increased to $367k from $221k.

Outlook and guidance

• Persistent US-China trade tensions, the COVID-19 pandemic and the Russia-Ukraine war continue to affect the global economy and operations.

• Cyber-attacks on critical infrastructure create opportunities for the Cyber-Security Division as transport and shipping organizations strengthen defenses.

• Oil and gas and renewables capex, tighter active vessel supply, and shipping decarbonization requirements support marine activity and opportunities in electrification, energy storage, Green LED retrofitting and GRE piping.