MARINE COP (coordinator, operator and partner), Avangaad Bhd [formerly E.A. Technique (M) Bhd] has made a pivotal milestone as the group’s first full year of normalised operations following the successful completion of its regularisation plan and subsequent upliftment from PN17 status on Feb 20 last year.
Driven by improved charter pricing within the fast crew boat fleet, its FY2025 revenue rose 4.0% to RM127.6 mil.
However, its pre-tax profit came in at RM29.0 mil which considerably dwarfs the group’s FY2024’s RM211.15 mil following a one-off, non-cash RM171.1 mil debt waiver gain, thus making year-on-year (yoy) comparison not indicative of operational performance.
This closing represents the group’s true baseline: a profitable, cash-generating marine services business functioning under normal conditions for the first time in several years.
“Two years ago, this company carried over RM122.0 mil in accumulated losses and was navigating a restructuring process,” recounted Avangaad’s executive director Datuk Wira Mubarak Hussain Akhtar Husin.
“Today, we have positive retained earnings, RM46.0 mil in cash and net gearing of 8.5%, of which we’ve strengthened our balance sheet through operational performance rather than external financing.”
Added Mubarak: “I’m confident that our resilience, anchored by recurring charter contracts, continues to support our operations.
“Generating RM65.1 mil in operating cash flow in FY2025 highlight the health of the underlying business. Margin improvement remains a focus. While we continue to optimise margins, the solid foundation and a strong order book provide clear visibility into 2027.”
Remarkable retained earnings turnaround
Looking ahead to 2026, Mubarak said Avangaad remains committed to being the Marine COP for its clients by driving operational consistency, disciplined execution and long-term, value-focused client relationships that create enduring value.”
The stand-out feature of FY2025 was the group’s ability to convert profitability into cash. Operating cash flow surged to RM65.1 mil, reversing the RM54.4 mil outflow recorded in FY2024.
This strong cash generation supported a free cash flow of RM43.7 mil, thus enabling the group to deleverage significantly.
Elsewhere, total borrowings were reduced by 15.7% to RM75.0 mil while net gearing improved to a healthy 8.5%, down from 23.9% a year earlier.
In essence, the group has delivered a remarkable turnaround with retained earnings rising from RM122.3 mil in accumulated losses at the start of 2024 to a positive RM76.7 mil by FY2025 – a total recovery of nearly RM199.0 mil in just two years.
Momentum in the business remains robust. Built on strong operational resilience and a pipeline of secured contracts, Avangaad booked approximately RM137.0 mil in new and extended contracts in FY2025, exceeding its annual revenue run-rate.
Notable contract awards and extensions secured during the year included Northport (Malaysia) Bhd contracts totalling RM66.8 mil which strengthened the group’s port marine services division and further supported diversification beyond marine services contribution and supporting diversification efforts away from oil & gas (O&G).
As of end-December 2025, Avangaad’s total order book stood at RM423.3 mil comprising RM154.7 mil in firm contracts and RM268.6 mil in extension options.
At the close of today’s (Feb 25) market trading, Avangaad was up 0.5 sen or 1.61% to 31.5 sen with 8.56 million shares traded, thus valuing the company at RM418 mil. – Feb 25, 2026
