Mun Siong Engineering (MF6) H1 2024 earnings summary

Executive summary

• 1H2024 revenue fell 9.7% YoY to $30.3m, while gross profit rose to $1.6m from $0.6m and gross margin improved to 5.3% from 1.9%.

• Loss before tax narrowed to $1.3m from $2.7m; net loss was $1.6m versus $2.9m, and EBITDA turned positive at $0.1m versus negative $1.0m.

• Lower Singapore activity remained a drag, partly offset by improved Malaysia performance and a profitable maiden US turnaround project.

Financial highlights

• Revenue was $30.339m, down 9.7% YoY; cost of sales decreased 12.8% to $28.735m.

• Gross profit was $1.604m versus $0.649m; operating loss narrowed to $1.385m from $2.738m.

• Net loss was $1.633m versus $2.867m; basic and diluted EPS were both negative 0.28 Singapore cents, versus negative 0.49 cents.

• Other income and recoveries declined 78.0% to $0.250m; administrative expenses fell 10.3% to $3.748m.

Outlook and guidance

• PIM is discussing a 2H2024 turnaround with another plant operator; no commitment had been received, though discussions were described as encouraging.

• PAI is seeking higher-value work and opportunities beyond oil and gas; Pengerang engagement continues to seek further Malaysian work.

• Singapore long-term maintenance contract renewals are under review; operating costs and foreign-worker policies make cost management challenging.