BIOENERGY-based Elridge Energy Holdings Bhd has posted a net profit of RM31.54 mil on the back of a revenue of RM293.51 mil for its 9M FY2024 ended Sept 30, 2024.
This marks the group’s first reporting period since its listing on the ACE Market of Bursa Malaysia on Aug 22.
The group’s revenue for the quarter ended Sept 30, 2024 was RM102.92 mil while its net profit stood at RM8.89 mil. These income streams were derived from customers based in Japan, Thailand, Singapore, Indonesia and Malaysia.
Material costs constituted the largest component in the group’s cost of sales which accounted for RM75.05 mil (91.5%) of its total cost of sales of amounting to RM82.02 mil for the current quarter.
There were no comparative figures for the preceding year’s corresponding quarter available as no financial report is prepared for the comparative financial period concerned.
The manufacturing of processed palm kernel shells (PKS) remains Elridge’s primary revenue driver, representing 86.27% of the group’s consolidated revenue. In comparison, the trading of wood pellets contributes 14.72%.
“Despite a challenging market environment, our financial performance for the year-to-date has met our expectations,” commented Elridge’s executive director and CEO Oliver Yeo.
“We are optimistic in the group’s capacity to deliver satisfactory financial performance for the fiscal year ending 2024 given the increasing demand for high-quality biomass fuel products.”
According to Coherent Market Insights, the industry size for PKS in the Asia Pacific (APAC) region is forecast to grow at 8.9% from an estimated RM1.4 bil in 2024 to RM1.7 bil in 2026.
Similarly, the industry size for wood pellets in the APAC region is forecast to grow from RM48.4 bil in 2024 to RM57.1 bil in 2026.
“The group is committed to enhancing production capacity for PKS to meet the growing demand in our sales network,” enthused Yeo.
“This is because new customers, particularly international clients, are increasingly seeking suppliers with the capability to fulfil their volume requirements on a consistent basis.”
To address this demand, Elridge will establish new manufacturing facilities in Pasir Gudang (Johor), Kuantan (Pahang) and Lahad Datu (Sabah).
“We’ve allocated RM68.14 mil from our initial public offering (IPO) proceeds for these expansion projects,” noted Yeo.
“Each facility will feature two production lines for PKS, targeting a combined estimated annual production capacity of 240,000 metric tonnes per site upon full operational status.”
At the close of today’s trading, Elridge was down 0.5 sen or 1.16% to 42.5 sen with 4.3 million shares traded, thus valuing the company at RM850 mil. – Nov 26, 2024
