Eneco Energy (R14) H2 2023 earnings summary

Executive summary

• FY2023 revenue was S$30.6m, down S$1.4m YoY; continuing operations earned S$83k after tax, while total profit was S$115k, including S$32k from discontinued operations.

• Operations were focused on Singapore logistics following completion of the Indonesian logistics disposal on 14 February 2023; priorities include profitable growth, cost discipline and new revenue streams.

Financial highlights

• Revenue was S$30.563m vs S$32.019m in FY2022; lower terminal-services, transportation and warehousing income was partly offset by supply-chain services and new contracts.

• Continuing-operations profit before tax was S$483k vs S$812k; profit after tax was S$83k vs S$295k, reflecting lower revenue and higher service-related costs.

• Total profit was S$115k vs S$2.048m; discontinued operations contributed S$32k vs S$1.753m, including the FY2023 disposal gain, net of translation-reserve reversal.

• Other income fell to S$1.458m from S$1.664m, mainly on lower grants, port rebates and disposal gains; finance costs declined to S$246k from S$353k.

• Operating cash inflow was S$4.693m vs S$5.718m; investing cash inflow was S$2.278m vs S$12.623m outflow, and financing cash outflow was S$5.822m vs S$8.630m inflow.

Outlook and guidance

• Singapore economic growth was expected to be comparable to 2023, with gradual recovery anticipated in H2 2024; tight financial conditions may restrain H1 growth.

• Priorities include competitive pricing, better resource utilisation, strict cost controls, securing healthy-margin contracts, expanding customer services and pursuing collaborations and new opportunities.

• The stated corporate objective was to raise market capitalisation and exit the SGX-ST Watch-List by year-end through stronger profitability and alternative revenue and profit streams.