Mooreast Holdings Ltd: FY2025 Financial Review and Investment Perspective

Mooreast Holdings Ltd, a specialist in Total Mooring Solutions serving the offshore oil & gas, marine, and renewable energy sectors, has released its unaudited financial statements for the full year ended 31 December 2025. This analysis provides a detailed review of the company’s operational performance, key financial metrics, and an investment outlook based strictly on the contents of the report.

Key Financial Metrics & Performance Overview

*NM: Not meaningful due to swing from loss to profit.

Historical Performance Trends

• Revenue Growth: The Group posted a robust 53% increase in total revenue to S\$38.3 million in FY2025 compared to S\$25.1 million in FY2024. The engine of this growth was the Mooring division, which contributed an additional S\$16.3 million (+249%) on the back of several high-value projects.
• Profitability: After a net loss in FY2024 (S\$2.3 million), the Group returned to profitability with a net profit of S\$3.6 million in FY2025. Gross profit margin improved to 45% from 40%, reflecting better project cost management and higher-margin projects.
• Quarterly Volatility: The second half of FY2025 saw a marked slowdown compared to the first half, with revenue and profit dropping sharply. This suggests earnings seasonality or project timing affecting results.

Segmental Highlights

• Mooring Division: Revenue surged to S\$22.9 million (FY2025) from S\$6.5 million (FY2024), driven by major project completions.
• Rigging, Marine Supplies, and Renewable Energy Divisions: All posted YoY declines, reflecting softer market activity in these areas.
• Yard Division: Delivered modest growth (+7%) to S\$7.8 million.

Cash Flow and Balance Sheet Strength

• Operating Cash Flow: Strong improvement to S\$9.4 million (FY2025) from S\$2.9 million (FY2024) due to higher profits and working capital release.
• Net Cash: Cash and equivalents rose to S\$18.2 million at year-end, up from S\$12.95 million prior year.
• Borrowings: Total loans and borrowings decreased slightly to S\$23.1 million. Convertible notes of S\$5.7 million are due in November 2026 and have been reclassified as current liabilities.
• Net Asset Value: Rose to S\$22.6 million (8.7 cents/share) from S\$19.1 million (7.4 cents/share).

Dividend Policy

No dividend has been declared or recommended for FY2025, consistent with the prior year. The Group is conserving cash to support ongoing operations and strategic investments.

Directors’ Remuneration

Exceptional Items & Noteworthy Events

• Other Income and Expenses: Other income declined sharply due to lower disposal gains and government grants. Legal/professional fees and bad debt expenses also fell, supporting the bottom line.
• Key Management Movements: Jaymes Sim, nephew of the Deputy Chairman, was appointed Deputy CEO effective 1 January 2025.
• Fundraising & Capital: No share buybacks or new issues. S\$5m convertible note remains outstanding and could lead to dilution (~6.75% if converted).
• Expansion: Approval secured for a strategic property acquisition (60 Shipyard Crescent) to enable larger and more complex projects.
• Related-Party Transactions: None outside ordinary course or previously disclosed.

Chairman’s Statement & Outlook

“Looking ahead, market activity across the offshore oil & gas and marine sectors is expected to provide a stable base of demand. The Group will continue to focus on its transformation to serve the floating offshore renewable market, while exercising strict cost management. Mooreast has been strengthening its position as a key mooring partner through partnerships and expanding its manufacturing capabilities and capacity.

In line with this strategy, the Group secured approval from JTC for the acquisition of 60 Shipyard Crescent, which will provide a stronger foundation to support larger and more complex projects over time. The Group remains focused on maintaining operational efficiency and financial discipline.”

Commentary Tone: The statement is cautiously optimistic, highlighting a stable outlook in core sectors and a strategic pivot towards renewables and larger projects. There is an emphasis on financial discipline and operational efficiency.

Conclusion and Investment Recommendations

Overall Assessment: Mooreast Holdings delivered a strong turnaround in FY2025, with significant revenue and profit growth, margin improvement, and strengthened cash flows. However, the second half performance was notably weaker than the first, and the company continues to face volatility in segment results. No dividend payout and the presence of pending convertible notes are additional considerations. The business is positioning for future growth in the renewables sector and larger projects, but execution risk remains.

Recommendation for Current Shareholders

• Hold: The company has demonstrated improved performance and cash flow, but quarter-on-quarter volatility and lack of dividend mean investors should monitor closely for continued execution, especially in the renewables pivot and project pipeline. Maintain position, but stay alert for future updates on orderbook, margin trends, and project wins.

Recommendation for Potential Investors

• Wait and Watch: While the turnaround is positive, the lack of dividend, earnings volatility, and pending convertible note dilution suggest waiting for further evidence of sustained profitability and growth momentum. Consider entering on future confirmation of stable multi-quarter performance and/or major contract wins in the renewables segment.

Disclaimer: This analysis is based solely on the information provided in the company’s FY2025 financial report. It does not constitute investment advice or take into account the specific objectives or circumstances of individual investors. Please conduct your own due diligence or consult a licensed financial advisor before making investment decisions.

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