E.A. Technique (M) Bhd (EATech), a Main Market-listed marine transportation and offshore storage outfit, has continued to stage strong financial recovery by virtue of its impressive growth in earnings for its 3Q FY2024 ended Sept 30, 2024.
The group posted a five-fold surge in net profit to RM27.62 mil during the quarter under review (3Q FY2023: RM5.12 mil) on the back of a RM31.6 mil revenue (3Q FY2023: RM31.73 mil).
The group’s robust earnings highlight its disciplined cost management, high utilisation rates and strategic creditor waivers that have significantly safeguarded its financial position.
For the 9M FY2024 period, EATech posted an impressive net profit of RM129.2 mil (9M FY2023:RM20.4 mil) mainly due to writebacks to other income as a result of its creditor scheme.
However, EATech recorded slightly lower revenue of RM93.4 mil during the nine-month period (9M FY2023:RM99.9 mil) due to the expiration of an FSO (floating storage and offloading) vessel contract.
Aside from that, core earnings remain supported by EATech’s diversified portfolio in oil & gas (O&G) and marine services as well as a robust order book that provides earnings visibility for the coming years.
For now, the group’s contracts are valued at RM146.6 mil with additional optional contracts worth RM240.2 mil which together provide strong foundation for continued profitability and growth.
“Our diversified operations across O&G and marine services have been instrumental in driving our recovery in a competitive market,” commented EATech’s executive director Datuk Wira Mubarak Hussain Akhtar Husin.
“This resilience has strengthened our profit margins with 3Q FY2024 gross profit rising 35% to RM13.1 mil, thus showcasing the effectiveness of our turnaround initiatives and the robust foundation of our business model.”
Mubarak further reaffirmed EATech’s commitment to its Practice Note 17 (PN17) upliftment journey by noting that “the regularisation plan is complete and we’re diligently working toward completing the final steps to achieve full regulatory compliance”.
Moving forward, EATech’s strategic focus remains on long-term stable contracts that contribute to recurring revenue.
For a start, the group’s flagship FSO vessel, Nautika Tembikai, is currently available and positioned for deployment with active plans to maximise its contribution to earnings.
By balancing short-term gains with commitments to long-term contracts, EATech has established a scalable, resilient model that delivers strong margins and growth across varied market conditions.
“With a sharpened focus on operational excellence and strategic expansion, EATech is well-positioned to capitalise on new opportunities in the marine transportation and offshore storage sectors,” envisages Mubarak.
At the close of today’s (Nov 14) trading, EATech was unchanged at 29.5 sen with 3.63 million shares traded, thus valuing the company at RM391 mil. – Nov 14, 2024
