AVANGAAD Bhd [formerly E.A. Technique (M) Bhd] has posted a marginal year-on-year (yoy) revenue decline primarily due to the anticipated transition period between the expiry of existing fast crew boat (FCB) contracts and the commencement of replacement engagements.
Nevertheless, succession contracts for the Main Market-listed marine transportation and offshore storage specialist’s three FCBs have already commenced within its financial quarter ended March 31, 2025 with the remainder expected to come on stream in 2Q 2025 – a development that is expected to progressively support topline recovery.
Importantly, this temporary dip was mitigated by the group’s solid operational fundamentals and high earnings visibility with a secured order book of RM141.7 mil alongside an additional RM214.6 mil available under optional contracts.
Meanwhile, the group’s proactive resolution of key outstanding matters has markedly strengthened its financial position as reflected in the group’s cash balance rising by 138% to RM45.5 mil within the quarter from RM19.1 mil.
Moreover, Avangaad’s operating cash flow remains healthy, having risen to RM32.03 mil or over five-fold jump from RM6.27 mil in 1Q FY2024.
This substantial improvement in liquidity shall enhance the group’s financial flexibility, supporting on-going operational momentum and providing headroom to capitalise on future growth opportunities.
“Avangaad’s fundamentals remain strong with solid operational cash flow and a substantial order backlog driving our growth strategy forward,” commented Avangaad’s executive director Datuk Wira Mubarak Hussain Akhtar Husin.
“We will continue to optimise fleet utilisation and cost efficiency, hence positioning the group for sustained performance and long-term profitability.”
The group’s charter hire segment recorded stronger customer concentration during the quarter ended March 31, 2025 with three external customers contributing 68% of total group revenue, up from 41% contributed by two customers in the corresponding period last year.
Revenue attributable to these key customers rose to RM20.42 mil or a 60.5% yoy increase from RM12.72 mil.
This reflects growing demand and strategic traction in the group’s core marine services operations, underpinned by sustained fleet deployment and deeper penetration in key accounts.
In line with its strategic growth plans, Avangaad has proposed acquiring the marine consultancy company Bumi Jaya Shipcare Sdn Bhd along with two tugboats for RM49.0 mil in March 2025.
This move is expected to expand its fleet from 26 to 31 vessels by 3Q 2025, thus further strengthening the group’s service capacity and operational readiness to support regional offshore activities and shaping its role as a dependable and scalable marine service provider.
At the close of today’s (May 22) market trading, Avangaad was down 0.5 sen or 1.79% to 27.5 sen with 24.6 million shares traded, thus valuing the company at RM365 mil. – May 22, 2025
