Baker Technology has reported earnings of $9.0 million for the 1HFY2022 ended June, 122% higher than the earnings of $4.1 million in the same period the year before.
The group’s net profit for the same period stood at $9.1 million, nearly three times higher than the $3.3 million in net profit logged in the 1HFY2021.
The higher net profit was attributable to three factors: the higher margin from chartering and fabrication activities, marginal profits achieved from its 54.98%-owned subsidiary CH Offshore as compared to a net loss in the 1HFY2021, and higher foreign exchange gains.
During the period, the US dollar (USD) strengthened by about 3.0% against the Singapore dollar (SGD) compared to the 1.7% gain in the 1HFY2021.
Earnings per share (EPS) for the 1HFY2022 increased to 4.4 cents from 2.0 cents in the 1HFY2021.
Revenue for the period increased by 55% y-o-y to $47.1 million primarily due to higher fabrication revenue and charter revenue as a result of improved operating conditions in the marine offshore industry.
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Cost of sales increased by 35% y-o-y to $29.8 million due to higher administrative expenses. The higher administrative expenses, in turn, were attributable to the higher allowance for expected credit losses, higher payroll costs and the absence of gain on disposal of vessels of $0.9 million recorded in 1HFY2021.
Gross profit surged by 101% y-o-y to $17.3 million.
As at June 30, cash and cash equivalents stood at $70.1 million.
Shares in Baker Tech closed 2 cents lower or 4.88% down at 39 cents on July 29.
