Federal International (2000) (BDU) H2 2024 earnings summary

Executive summary

• FY2024 returned to profit, with S$3.9m attributable net income versus an S$18.0m loss in FY2023; lower revenue was offset by disposal gains and improved associate results.

• Operations were streamlined around regional flowline-control trading, fire detection and protection systems, and procurement services; China businesses and the Indonesian land-rig charter activity were exited.

Financial highlights

• Revenue fell 12.0% YoY to S$44.3m from S$50.3m, mainly after the China disposal and the end of land-rig charter income.

• Gross profit was S$11.6m versus S$13.3m; other income rose to S$6.7m from S$1.6m, including S$4.5m in disposal gains and S$945k in associate dividend income.

• PBT was S$5.629m versus a S$677k loss; attributable net profit was S$3.886m versus an S$17.989m loss. FY2024 included a S$2.663m gain on disposal of the China disposal group and a S$1.857m gain on the land rig disposal.

• Income tax expense increased to S$1.656m from S$658k, including an S$842k deferred-tax asset reversal.

Outlook and guidance

• Outlook is cautiously positive for 2025; plans include expanding flowline-control and procurement opportunities in Vietnam and Thailand and building regional EPCIC collaborations and order book.

• Fire-system prospects are supported by Singapore construction activity, safety concerns and stricter fire-safety regulation.

• PTG reported FY2024 PBT of US$5.4m and a strong order book for the next two years, supporting procurement activity tied to its offshore projects.