E.A. Technique (M) Bhd, a Main Market-listed marine transportation and offshore storage outfit, has reported an eighth consecutive quarter of positive earnings with a net profit of RM94.7 mil and a revenue of RM30.6 mil for its 2Q FY2024 ended June 30, 2024.
This reflects an over 11-fold growth or over 1,112% jump in net earnings from RM7.8 mil in the same period a year ago.
The performance experienced a huge upward swing in 2Q FY2024 primarily due to a write-back associated with the creditor scheme and one-off expenses from the group’s Practice Note 17 (PN17) regularisation plan.
Nevertheless, E.A. Technique’s core earnings showed notable resilience amidst these temporary factors by consistently delivering profits and upholding positive cashflow.
For its 1H FY2024, the group delivered impressive performance metrics with revenue of RM61.8 mil and net earnings of RM101.5 mil, up from RM15.3 mil or a surge of over five-fold or 564% a year ago.
Disregarding one-off profits and expenses, E.A. Technique’s 2Q FY2024 achieved core earnings of RM5.3 mil or a total of RM12.2 mil for 1H 2024.
Inclusive of the two quarters in 2024, the group achieved eight consecutive quarter earnings, highlighting its solid growth trajectory and resilience with no further going concern issues.
The completion of its regularisation plan along with the expected upliftment of PN17 anticipated by 1H 2025 further reinforces this favourable outlook.
In 2024, EATech has further strengthened its position with new secured contracts, including an extension with Northport (M) Bhd for harbour tugboats services valued at RM6.4 mil and a contract with PETRONAS Carigali Sdn Bhd for fast crew boats worth RM3.6 mil.
As of 1H 2024, the group’s orderbook stands at RM136.4 mil with an additional RM281.2 mil for the extendable period.
Recall that E.A. Technique had on June 24 secured shareholder approval to advance its proposed initiatives for integrating a white knight and in the same month completed its regularisation plan.
The group has also enhanced its board competencies with new appointments, including Datuk Wira Mubarak Hussain Akhtar Husin and Datuk Lai Keng Onn as executive directors on July 10.
This was followed by Datuk Sri Nazir Hussin Akhtar Hussin as executive director, and Tong Siut Moi and Michael Cheah Choy Chin as independent non-executive directors (INED) on July 23.
Additionally, the introduction of new shareholders led to a substantial increase in equity capital with the group’s balance sheet now reflecting total equity of RM239.7 mil, up from RM57.5 mil as of end-December 2023.
“The entry of Voultier Sdn Bhd reflects the confidence of two key investors in the group’s potential,” commented Mubarak and Lai on E.A. Technique’s 2Q FY2024 impressive performance.
“The group’s consistent profitability across multiple quarters highlights the strength of its business, and we are committed to maintaining this momentum. The current challenges are temporary and we are confident that we are nearing the end of this difficult period with E.A. Technique on a clear upward trajectory.”
At 3.30pm, E.A. Technique was up 0.5 sen or 1.69% to 30 sen with 6.3 million shares traded, thus valuing the company at RM389 mil. – Aug 30, 2024
