Beng Kuang Marine Limited: 1H2025 Financial Results Analysis
Beng Kuang Marine Limited, listed on the Singapore Stock Exchange, has released its unaudited condensed interim financial statements for the six months ended 30 June 2025. Below is a comprehensive analysis of the company’s performance, financial position, and outlook, based strictly on the disclosed financial report.
Key Financial Metrics and Performance Table
| Metric |
1H2025 (Current) |
2H2024 (Previous Half) |
1H2024 (Same Period Last Year) |
YoY Change (vs 1H2024) |
QoQ Change (vs 2H2024) |
| Revenue |
\$50.79M |
— |
\$59.92M |
-15.2% |
— |
| Net Profit |
\$6.88M |
— |
\$14.38M |
-52.2% |
— |
| Profit Attributable to Equity Holders |
\$2.93M |
— |
\$8.57M |
-65.8% |
— |
| EPS (Basic/Diluted, cents) |
1.46 |
— |
4.30 |
-66.0% |
— |
| Gross Profit Margin |
38.2% |
— |
35.5% |
+2.7 pts |
— |
| Dividend (Declared/Proposed) |
None (for 1H2025) |
Final FY2024: \$1.23M paid |
None (for 1H2024) |
— |
— |
| Net Asset Value per Share (cents) |
11.43 |
10.54 (Dec 2024) |
— |
+8.4% |
+8.4% |
Historical Performance and Segment Commentary
Beng Kuang Marine reported a notable YoY decline in top and bottom-line figures for the first half of 2025:
- Revenue: Fell by 15.2% YoY to \$50.79 million. The decline was mainly due to a slower start in the Infrastructure Engineering (IE) division, with delays in project execution and fewer contract commencements. The Corrosion Prevention (CP) division also experienced a marginal 2.2% drop in revenue.
- Net Profit: Plunged 52.2% YoY to \$6.88 million. Excluding an exceptional gain of \$5.51 million from a one-off asset sale in 1H2024, the normalized profit drop is less severe but still material.
- EPS: Down sharply to 1.46 cents, versus 4.30 cents in 1H2024.
- Gross Profit Margin: Despite lower revenue, the margin improved to 38.2% (from 35.5%), reflecting effective cost controls and restructuring efforts.
Segment Performance
- Infrastructure Engineering (IE):
- Revenue declined 17.8% YoY, mainly due to delayed execution in Africa and Guyana. The company maintains a healthy pipeline, with positive prospects in Latin America and India.
- Corrosion Prevention (CP):
- Revenue decreased by 2.2%. Singapore operations performed well, buoyed by FPSO module and offshore wind farm projects, while Batam operations saw a decline due to projects nearing completion.
Exceptional Items and Other Income
- Other Gains/Losses: Swung from a gain of \$7.26 million in 1H2024 to a loss of \$7,000 in 1H2025, primarily due to the absence of the prior year’s one-off gain from Batam yard asset sales and foreign exchange losses (\$1.19 million loss vs. \$0.63 million gain last year).
- Finance Costs: Decreased by 37.4% YoY due to reduced borrowings and improved financing terms.
Balance Sheet and Cash Flow Highlights
- Cash & Equivalents: Increased to \$25.13 million (from \$22.92 million end-2024), reflecting strong operating cash flow generation.
- Net Assets: Rose to \$33.08 million (from \$28.47 million end-2024), with net asset value per share improving to 11.43 cents.
- Debt: Total borrowings stood at \$8.03 million, down from \$8.24 million at end-2024, with a reduction in current liabilities and modest increase in non-current liabilities due to refinancing.
- Operating Cash Flow: Net cash from operations was \$10.01 million, primarily driven by profit and favorable working capital movements. Investing activities used \$2.40 million, mainly for yard upgrades and equipment renewal. Financing outflows of \$5.12 million reflected bond repayments, borrowings, and dividends.
Dividends
- 1H2025: No interim dividend declared or proposed. The Board will reassess dividend policy at year-end.
- Previous Periods: A final cash/scrip dividend of \$1.23 million was paid for FY2024, but no interim or 1H2024 dividend was declared.
Corporate Actions and Notable Events
- Share Issuance and Warrants: Share capital increased to 207.24 million shares due to bonus warrants, compensation shares, and scrip dividend issuance. 59.76 million bonus warrants remain outstanding, but are anti-dilutive at the current market price.
- Asset Sales: 1H2024 included a significant one-off gain from the sale of Batam yard land; no similar disposals occurred in 1H2025.
- Related Party Transactions: Repayment and full settlement of interest-free loans previously extended by the CEO. No outstanding related-party loans as of 30 June 2025.
- No Treasury Shares or Convertible Instruments: The company did not hold any treasury shares or outstanding convertibles at the reporting date.
Outlook and Management Commentary
Management maintains a cautiously optimistic tone regarding the Group’s prospects. The oil and gas sector’s stable outlook and continued activity in the marine industry are expected to support business momentum. However, management acknowledges that ongoing geopolitical tensions and global economic uncertainties may temper growth.
The company continues to focus on operational agility, cost control, and leveraging growth opportunities, particularly in the IE and CP divisions. No material events have occurred after the reporting period that would affect the financial statements.
Conclusion: Financial Health and Prospects
Beng Kuang Marine’s 1H2025 results show a clear slowdown in revenue and profitability compared to the prior year, primarily due to project timing and the absence of extraordinary gains. However, the company’s balance sheet has strengthened, with a higher net asset value and improved cash position. The improved gross profit margin and lower finance costs reflect successful cost control and restructuring efforts.
The outlook is neutral to mildly positive: while near-term earnings remain pressured by slow project starts and forex volatility, the company retains a strong pipeline and continues to invest in its core divisions. Investors should watch for the timing of new project wins and the company’s ability to convert its order book into revenue in the coming quarters.
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