Beng Kuang Marine has reported profit before tax from continuing operations of $10.82 million in its FY2023 ended December, a turnaround from the loss of $5.55 million it recorded in FY2022.
The improved performance was mainly due to improved and positive contributions from infrastructure engineering and corrosion prevention activities; other gains from the disposal of asset held-for-sale of $6.26 million of land forming part of the company’s waterfront fabrication yard in Batam, Indonesia; and strategic initiatives undertaken to exit and dispose of loss making business operations.
Revenue in FY2023 grew 33.9% y-o-y to $79.16 million.
On the back of cost minimisation and productivity initiatives, the company’s gross profit margin grew to 31.5% in FY2023, as compared to 21.2% in FY2022.
The company also achieved positive ebitda of $15.67 million in FY2023, as compared to negative ebitda of $13.55 million in FY2022.
In addition to asset disposals, the company has been reducing its borrowings over the years. As at Dec 31, 2023, its total borrowings decreased 36.3% to $14.14 million. Cash and cash equivalents stood at $12.19 million.
See also: Envictus reports profit turnaround with earnings of RM50.6 mil
Beng Kuang Group CEO Yong Jiunn Run describes FY2023 as a transitional year as the company’s turnaround plan gathers pace on restoring profitability, deleveraging its balance sheet and simplifying its operations with profitable business divisions. “The encouraging results to date support our belief that we are on the right track.
“Building on our strong business momentum in 2HFY2023, we aim to capitalise on emerging growth trends within the offshore and marine industry in FY2024 and develop a new phase for the group’s future growth,” says Yong.
Shares in Beng Kuang closed 0.7 cents higher or 9.4% up on Feb 26 at 8.1 cents.
