Mooreast Holdings Ltd.: 1H2025 Financial Review and Investor Insights

Mooreast Holdings Ltd., listed on the Catalist Board of SGX-ST, released its unaudited financial statements for the six months ended 30 June 2025. Mooreast is a specialist in total mooring solutions for offshore oil and gas, marine, and offshore renewable energy industries, with operations in Singapore and sales offices across Europe and Asia.

Key Financial Metrics Overview

*The company does not disclose previous quarter (2Q2025 or 2H2024) figures, so only YoY comparisons are shown.

Historical Performance Trends

• Revenue: Significant spike in 1H2025 (+84% YoY), attributed to the completion of several high-value, one-off mooring orders totaling S\$12.5 million. This is not expected to recur in the next period.
• Gross Profit: Outpaced revenue growth with a 115% increase, raising margins from 37% to 43%.
• Net Profit: Positive swing from a net loss in 1H2024 to a net profit of S\$3.54 million in 1H2025, driven by exceptional revenue performance and controlled costs.
• Net Asset Value: Improved from 7.4 cents per share to 8.7 cents per share, reflecting stronger balance sheet health.

Segmental Performance and Exceptional Items

• Mooring Division: Revenue soared from S\$3.42 million to S\$16.08 million (+370%) due to high-value orders.
• Other Divisions: Rigging, Marine Supplies, Renewable Energy, and Yard divisions saw declines due to market slowdowns.
• Exceptional Earnings: The spike in revenue and net profit is exceptional and not expected to repeat in 2H2025. This was clearly stated by management.

Chairman/CEO’s Statement and Outlook

“During the period under review, the Group completed several high-value mooring orders totaling S\$12.5 million. The completion of these projects largely accounted for the substantial increase in revenue for 1H2025, which is not expected to recur for 2H2025. The Group remains confident about the long-term growth prospects of the offshore renewable energy space, as more projects reach the commercialisation phase. The Group’s strategy is to focus on opportunities for mooring and rigging solutions in Europe and North Asia. Beyond marketing and business development, Mooreast has also been establishing partnerships and collaborations in Europe, South Korea and Taiwan to support business opportunities.”

The tone is cautiously positive: management notes the exceptional nature of 1H2025 results, but expresses confidence in long-term prospects and ongoing strategic initiatives, including new partnerships in Europe and Asia.

Directors’ Remuneration

• Total key management remuneration (1H2025): S\$1.09 million (including S\$0.33 million for directors’ salaries and S\$0.012 million for directors’ CPF contributions).

Divestments, Fundraising & Corporate Actions

• No share buybacks, placements, or dilution reported.
• Mooreast received S\$10 million from EDBI, with S\$0.9 million used for working capital needs.
• No new acquisitions or sales of shares requiring disclosure this period.

Events Impacting Business and Risks

• No natural disasters, legal disputes, or adverse macroeconomic shifts reported.
• Mooreast signed partnerships to strengthen its capabilities, notably with GeoProvider AS (Norway) for offshore data analysis, and with Korean Ocean Engineering & Consultants Co., Ltd. for joint business and technology collaboration.

Dividend Declaration

• No interim dividend for 1H2025 as Mooreast conserves cash to operate prudently and support future growth.

Cash Flow and Financial Position

• Operating Cash Flow: Net cash generated from operations in 1H2025 was S\$5.26 million, reversing a negative cash flow in 1H2024.
• Investing Activities: S\$3.29 million generated, mainly from maturing fixed deposits.
• Financing Activities: S\$2.66 million used, mainly for repayments and interest.
• Cash & Bank Balances: S\$18.46 million as at 30 June 2025 (up from S\$16.17 million at end-2024).

Forecasts and Strategic Direction

• Exceptional 1H2025 performance is not expected to recur in 2H2025.
• Long-term strategic focus remains on offshore renewable energy, especially in Europe and North Asia.
• Management is proactively forming partnerships to support future business opportunities.

Conclusion and Investment Recommendation

Mooreast Holdings delivered a remarkable turnaround in 1H2025, with record revenues and profits driven by exceptional, non-recurring orders in its Mooring division. Margin improvements and robust cash flows further reinforce the company’s operational strength. Management’s tone is cautiously optimistic for the long term, underpinned by growth in offshore renewables and strategic alliances, but warns of normalization in 2H2025 performance as the exceptional orders subside.

• If you are currently holding the stock: Consider maintaining your position for the medium term, especially if your investment horizon aligns with Mooreast’s strategic shift toward offshore renewables. However, be prepared for softer results in the second half of 2025 as the exceptional revenue spike will not recur. Monitor for sustained order flow and margin stability.
• If you are not currently holding the stock: Exercise caution before initiating a new position. The company’s financials are strong, but the outsized 1H2025 profit is one-off. Consider waiting for confirmation of recurring growth in future quarters, or for possible price retracements as the market adjusts to normalized earnings.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consider their risk tolerance before making investment decisions. Past performance is not indicative of future results.

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