Baker Technology has reported earnings of $11.9 million for its 1HFY2024 ended June, surging up 189% from $4.1 million recorded in the same period last year.
This is due to higher contributions from chartering activities, lower administrative expenses due to absence of allowance for expected credit loss and higher foreign exchange gains as the US dollar strengthened.
Earnings per share for 1HFY2024 stood at 5.9 cents, up 195% compared to the 2 cents in 1HFY2023.
Revenue grew 33% y-o-y to $52.4 million, primarily due to higher charter revenue and spare sales. The higher charter revenue was driven by higher vessel utilisation for the company’s owned vessels and higher contribution from third party managed vessels.
The company’s cash and cash equivalents increased to $98.3 million as at June 30 from $87.5 million as at Dec 31, 2023, due to better operating cash flows during 1HFY2024.
In its outlook, the company notes the ongoing Russia-Ukraine and Israel-Hamas conflicts, which have resulted in wider polarisation and tensions between the US and China, casting a pall on supply chain and energy markets.
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“Given the above, the group will continue to be conservative while strengthening its core capabilities and productivity to be poised for growth opportunities,” it adds.
Shares in Baker Technology BTP closed 2 cents higher or 3.25% up on July 29 at 63.5 cents.
