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, up 14% year-over-year 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, and 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%–17.4%, down from prior year due to increased overheads.

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

• Net debt reduced to AUD 12.4 million pro forma post-IPO, from AUD 65.1 million at June 2024.

• NPAT was AUD 5.5 million–11 million, down year-over-year due to prior year tax benefit.

Outlook and guidance

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

• Focus on strengthening core business, expanding into decommissioning, offshore wind, and defense, and pursuing disciplined M&A.

• CapEx expected to rise in FY25 due to dry docking and inflation.

• Strong pipeline and government support for decommissioning, offshore wind, and defense projects.

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