Penguin International (BTM) H1 2024 earnings summary

Executive summary

• H1 revenue fell 33.6% YoY to $59.9m, mainly on fewer stock-vessel sales; net profit rose 19.6% to $2.9m as gross profit and margins improved.

• Core shipbuilding and crewboat chartering activity was gradually recovering, while supply-chain disruption and rising costs remained headwinds.

Financial highlights

• Revenue was $59.898m, down 33.6% YoY; gross profit rose 19.0% to $26.939m.

• Operating profit increased 26.9% to $6.109m; profit before tax rose 22.9% to $5.649m, and net profit increased 19.6% to $2.892m.

• Other operating expenses fell 19.4% to $6.271m, primarily reflecting a $1.516m net FX gain versus a $1.448m loss in H1 2023; admin expenses rose 24.8% to $14.564m.

• H1 included a $1.362m trade receivable write-off following termination of a shipbuilding contract and a $1.088m general expected-credit-loss provision.

• Operating cash flow was $10.127m versus $17.046m in H1 2023; cash and cash equivalents ended at $17.721m, down from $19.787m at FY 2023-end.

Outlook and guidance

• Demand for Flex multi-role crewboats and WindFlex crew transfer vessels remained strong, supported by offshore petroleum and offshore wind activity; near-to-medium-term outlook for both energy segments was positive barring global shocks.

• Supply-side risks from logistics and material costs were expected to persist; the current impact on deliveries and margins was described as small, with supplier engagement and regular monitoring underway.

• Middle East geopolitical tensions were being monitored for potential effects on chartering and sales; conditions were described as stable at the reporting date.