Bhagwan Marine (BWN) H2 2024 earnings summary

Executive summary

• Achieved record FY24 revenue of AUD 303.1 million, up 79% year-over-year and 4% above prospectus forecast.

• Pro forma EBITDA reached AUD 41.3 million, a 14% increase from FY23 and 6% above forecast.

• Successfully completed an AUD 80 million IPO and ASX listing in July 2024, significantly deleveraging the balance sheet.

• Entered the high-growth decommissioning sector, completing the largest project by an Australian-owned provider.

• Enhanced safety performance with improved TRIFR and LTIFR metrics, over 800,000 offshore hours worked without a lost time injury.

Financial highlights

• Net revenue (excluding pass-through) up 59% year-over-year and 1% above forecast.

• Pro forma EBITDA margin at 15.4% (down from 21.5% prior year); statutory EBITDA margin at 14.8%.

• Operating cash flow of AUD 29 million, 5% ahead of forecast; free cash flow of AUD 17 million, 1% ahead of forecast.

• Net profit after tax (NPAT) was AUD 11 million, down 46% year-over-year due to prior year tax benefit; statutory NPAT AUD 5.5 million, down 68%.

• Pro forma net debt reduced to AUD 12.4 million as of June 2024, following substantial IPO-driven repayments.

Outlook and guidance

• Strong supply-demand fundamentals in marine services, with robust pipelines in decommissioning, offshore wind, and defense.

• No formal FY25 guidance provided; updates to be given at AGM and half-year.

• Focus for FY25 on strengthening core business, expanding into growth sectors, disciplined M&A, and increasing recurring revenue.

• Expectation of higher CapEx in FY25 due to asset dry docking and industry cost inflation.

• Targeting longer-term contracts to ensure higher vessel utilization and stable revenue.