Federal International (2000) (BDU) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 62.8% YoY to S$50.3m after completion of a major PT Gunanusa procurement project in FY2022 and no similarly sized replacement project.ocument-source]3ocument-source]

• Reported loss before tax was S$0.677m versus profit of S$3.111m; a S$1.710m loss on settling a shareholder loan added pressure.ocument-source]76ocument-source]

• Strategic focus shifted toward regional trading, with a 30% interest in PT Gunanusa and disposal of China entities to exit underperforming operations.ocument-source]3ocument-source]

Financial highlights

• Revenue was S$50.303m versus S$135.136m; gross profit was S$13.276m, down 35.7% YoY, while gross margin rose to 26.4% from 15.3%.ocument-source]12ocument-source]

• Net loss after tax was S$1.335m versus profit of S$2.338m; loss attributable to owners was S$17.989m versus profit of S$2.504m.ocument-source]76ocument-source]

• Other income declined to S$1.563m from S$4.000m, reflecting no repeat of S$2.930m investment-property fair value gain or S$0.415m rental income.ocument-source]12ocument-source]

• Administrative costs fell 21.2% to S$7.5m; finance costs fell 52.2% to S$0.769m, while share of associate results swung to a S$0.638m loss from S$0.815m profit.ocument-source]12ocument-source]

Outlook and guidance

• Singapore’s 2024 GDP growth forecast was 1.0%–3.0%; the domestic outlook was expected to remain muted near term, with gradual improvement in H2 2024.ocument-source]3ocument-source]

• Regional oil and gas activity was expected to remain resilient; focus was on partners and PT Gunanusa to secure procurement scope for offshore EPCIC projects.ocument-source]5ocument-source]

• India was identified as a target growth market for flowline-control products and services, with a collaboration agreement signed with Westfield Energy Resources for EPC tenders.ocument-source]4ocument-source]