AVANGAAD Bhd, the Marine COP (coordinator, operator and partner), has chalked up 9% year-on-year (yoy) net profit growth to RM5.08 mil for its 1Q FY2026 ended March 31, 2026 (1Q FY2025: RM4.65 mil) driven by an aggressive order book replenishment strategy and sustained balance sheet deleveraging.
For the period under review, the group’s revenue inched up 4% yoy to RM31.26 mil (1Q FY2025: RM29.97 mil) while its pre-tax profit firmed 17% yoy to RM6.38 mil.
This improved earnings outlook was primarily driven by strong operational execution, including new fast crew boat (FCB) contract wins.
A key highlight for the quarter was the successful revision of a core contract period which alone injected RM49.3 mil of high-certainty pipeline into the group’s firm order book.
During its 1Q FY2026, the group successfully secured three key contracts comprising a 24-month bareboat charter contract for one FCB valued at RM5.37 mil, a spot charter worth RM504,000 and a 270-day FCB contract extension worth RM5.26 mil.
This strong backlog provides a stable, contract-backed base for its port marine services while its tug and offshore service vessel (OSV) operations remain primed to capture near-term volume uplifts, hence ensuring cash flow stability and efficient fleet utilisation.
As of end-March 2026, Avangaad’s firm order book expanded to RM183.7 mil, which if supplemented by RM261.8 mil in optional contract extensions, brings total revenue visibility to RM445.5 mil.
“We entered FY2026 executing the exact discipline established over the past year. By securing new FCB contracts, tightening our cost structure and aggressively paying down debt, we grew our pre-tax profit by 17% on stable revenue,” commented Avangaad’s executive director Datuk Wira Mubarak Hussain Akhtar Husin.
‘Prioritising fleet optimisation’
“More importantly, our order book has grown, our cash position has strengthened and borrowings continue to decline.”
Added Mubarak: “As the Marine COP, our role is to deliver with consistency. Our primary focus remains on the metrics that build a highly resilient earnings base: maximising fleet utilisation, securing contract continuity and driving cash flow generation.”
Operational performance remained highly robust during the quarter with earnings growth outpacing revenue growth due to strict cost discipline.
Administrative expenses were reduced by 17% yoy to RM5.2 mil while finance costs declined 24% to RM900,000, a reflection of on-going deleveraging progress post-regularisation. These improvements lifted the group’s pre-tax margin to 20.4% from 18.1% in the prior year.
All in all, Avangaad delivered continued balance sheet strengthening which is supported by RM13.3 mil in net operating cash flow generation.
Liquidity rose to RM53.5 mil while borrowings declined to RM71.5 mil. The group’s net gearing improved to 0.05x from 0.08x, reflecting healthy momentum and a clear step-change in capital structure strength.
As it progresses into the next quarter, Avangaad stresses that it remains focused on prioritising fleet optimisation, contract renewal retention, expansion of term and spot charter coverage and the selective pursuit of high-margin marine chartering opportunities.
These initiatives are expected to sustain utilisation-driven earnings visibility for the remainder of FY2026.
At 2.42pm, Avangaad was down 0.5 sen or 1.64% to 30 sen with 297,000 shares traded, thus valuing the company at RM398 mil. – May 21, 2026
