Federal International (2000) (BDU) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 190.0% to S$128.3m, led by higher trading sales and S$17.5m in vessel charter income; gross margin fell to 16.9% from 26.2%.

• Net profit attributable to owners declined 17.9% to S$3.2m, as lower associate earnings and a S$1.8m PTG disposal impairment offset higher gross profit.

• Operations are being refocused through the proposed PTG disposal and an 8.82% investment in Vietnam-based SRE HoldCo; regional oil and gas activity is expected to remain resilient.

Financial highlights

• Revenue was S$128.334m versus S$44.260m in FY2024; cost of sales rose to S$106.633m from S$32.644m.

• Gross profit increased 86.8% to S$21.7m; margin declined to 16.9% from 26.2% on a higher-volume, lower-margin sales mix.

• Profit before tax was S$4.515m versus S$5.629m; net profit was S$3.774m versus S$3.973m, including S$3.192m attributable to owners versus S$3.886m.

• Other income fell to S$1.4m from S$6.7m; FY2024 included a S$4.5m disposal gain, while FY2025 recorded S$2.4m of foreign exchange loss in other operating expenses.

• Operating cash flow was S$15.6m versus an outflow of S$2.8m; cash and cash equivalents increased S$30.4m to S$37.4m at year-end.

Outlook and guidance

• Outlook remains cautiously positive: regional oil and gas activities are expected to be resilient, with Vietnam and Indonesia growth supported by established networks.

• Continued regional EPCIC partnerships are intended to build the offshore platform order book; performance depends on prudent cost management and competitiveness in procurement tenders.

• The proposed PTG disposal is subject to shareholder approval in 2026; completion would include settlement of PTG balances and transfer of SK shares.

• FY2026 environmental targets include reducing electricity consumption by 3% and maintaining water intensity at 0.2 m³/m².