Mooreast Holdings has reported that earnings for 1HFY2022 more than doubled from $392,000 to $872,000. Revenue in the same period that ended June was up 81% y-o-y to $13 million.
The company, which is in the niche business of providing mooring systems for the offshore and energy industries, says that its newly-established yard division helped drive the revenue growth.
The marine supplies and services and renewable energy divisions, on the other hand, booked lower revenue.
While Mooreast’s revenue increased, costs went up by a higher magnitude, causing gross profit margin to drop by 8.8%.
On August 11, the company announced it won a deal to deliver 15 midwater arch buoys to a 16.8MW floating offshore wind farm in Japan. Mooreast says this is the first commercial-scale floating wind farm in Japan, located off Nagasaki.
The floating wind farm will be built by a consortium led by Toda Corporation, a leading Tokyo-listed contractor. The project will commence in August 2022 and is seen to contribute to Mooreast’s earnings for the current FY2022 and FY2023.
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This is Mooreast’s first commercial-scale floating renewable energy project since its IPO last November.
The company expects more offshore wind projects to be launched in Japan as part of the nation’s strategy to achieve carbon neutrality by 2050.
“Participating in Japan’s first commercial-scale floating wind farm will be another milestone in Mooreast’s strong track record,” says CEO Sim Koon Lam.
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“It is a significant step for the group’s transformation towards supporting the floating renewable sector, and we believe our expertise and deep domain knowledge will add value to these projects," he adds.
The company warns that with rising rates, manpower shortage and supply chain issues operating costs will go up further. Reduced investments and financing in the oil & gas sector have also led to extended project timelines for its mooring and rigging divisions.
Mooreast says it will stay to its plan to actively diversify towards the renewable energy sector.
Mooreast shares, which was offered at 22 cents at its IPO, last traded at 12 cents.
