Offshore and marine company ES Group expects to record a net profit in its 1HFY2024 ended June, it says in a profit guidance.
In a bourse filing, the company attributes the guidance to one-off income from insurance claims for the breakdown of its vessel ES Jewel during 2023; an improvement in gross profit and gross profit margin from the new building and repair segment on better productivity; as well as gross profit recorded from the shipping segment, compared to the gross loss recorded in the previous corresponding period.
During 1HFY2023, the Group’s vessel, ES Jewel, had to undergo various repairs as well as scheduled docking, which resulted in a significant increase in repair and maintenance expenses and holding cost, as well as a decrease in revenue.
In 1HFY2024, ES Jewel was in full operations throughout the period. With the absence of the aforementioned repair and maintenance expenses, the shipping segment generated higher revenue and gross profit for the company.
Further details will be disclosed when the company announces its 1HFY2024 results on or before August 14.
Shares in ES Group closed flat on Aug 1 at 4.9 cents.
