Hiap Seng Industries (1L2) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 34.1% YoY to S$24.9 million and gross profit increased 98.8% to S$6.1 million, supported by higher maintenance activity and cost control.

• Profit attributable to owners was S$20.1 million; adjusted operating profit, excluding non-recurring income and expenses, was approximately S$2.8 million.

Financial highlights

• FY2024 revenue was S$24.936 million, up 34.1% from S$18.601 million in FY2023.

• Gross profit increased 98.8% YoY to S$6.117 million from S$3.076 million, with higher maintenance volumes and lower administrative expenses contributing to the improvement.

• Profit attributable to owners was S$20.065 million, versus a S$2.559 million loss in FY2023.

• Adjusted operating profit was approximately S$2.8 million after excluding non-recurring income and expenses.

Outlook and guidance

• Cautiously optimistic over the near to medium term; priorities include initiatives to buffer challenging oil and gas conditions and diversification beyond oil and gas.

• Will pursue development, investment and diversification opportunities expected to support profitability, while exercising caution.