Beng Kuang Marine has reversed into profitability, reporting a profit before tax of $2.22 million for the 3QFY2023 ended Sept 30, up from the loss before tax of $0.87 million in the 3QFY2022.
For the 9MFY2023, the company’s profit before tax stood at $2.73 million, up from the $1.85 million loss in the 9MFY2022.
According to Beng Kuang, its turnaround is gaining momentum as its results improved on the back of a stronger performance in the 3QFY2023.
Revenue for the 3QFY2023 rose by 44% y-o-y to $21.4 million while 9MFY2023 revenue grew by 21% y-o-y to $53.3 million. The growth in revenue for both periods were attributed to the company’s two core business divisions, infrastructure engineering (IE) and corrosion prevention (CP).
Gross profit for the 3QFY2023 and 9MFY2023 surged by 243% y-o-y and 117% y-o-y to $7.64 million and $16.0 million respectively. Gross profit margin (GPM) improved to 30.1% for the 9MFY2023 due to costs minimization and productivity measures.
Adjusted ebitda for the 9MFY2023 spiked by 195% y-o-y to $7.4 million.
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“We maintained positive organic growth with our core IE and CP business divisions delivering strong performance, providing good momentum in our turnaround,” says Yong Jiunn Run, CEO of Beng Kuang. “Our strategy is delivering, demonstrated with the strength of our underlying performance and monetising efforts, and we remain confident that Beng Kuang Group is well positioned to create high-value growth within the marine and offshore industry.”
For the 9MFY2023, the company generated net cash inflow from operating activities to $6.64 million. Cash and cash equivalents as at Sept 30 stood at $6.6 million.
Following the completion of the partial disposals of the company’s shipyard in Batam, Beng Kuang’s balance sheet will be boosted by $18.5 million in cash.
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After the proposed partial disposals, Beng Kuang will continue to own 137,986 sqm of the waterfront yard in Batam.
Shares in Beng Kuang closed 0.1 cent higher or 1.79% up at 5.7 cents on Nov 9.
