About Beng Kuang

In their press release in Feb 2024, Beng Kuang Group achieved a turnaround in FY2023, reporting a net profit of S$7.92 million, driven by strong business drivers in the second half of the year. The company’s revenue grew by 33.9% to S$79.16 million, with gross profit surging by 98.9% to S$24.91 million. This turnaround was part of the company’s strategy, which includes an asset-light and service-oriented business model anchored by its two core divisions, IE and CP.

The Group continued to perform well within the offshore and marine market, particularly in the second half of 2023, as revenue surged by 57.2% to S$47.31 million. Higher demand for its FPSO and FSO contracting and maintenance services drove IE’s growth momentum, with organic revenue growth of 85.9% and 47.0% in the second half of 2023 and for the full year, respectively.

Cost minimization and productivity measures implemented in recent years, coupled with the exit of loss-making business operations, improved the gross profit margin to 31.5% in FY2023 from 21.2% in FY2022, driving gross profit growth to S$24.91 million. The Group generated a net cash inflow from operating activities of S$5.95 million in FY2023.

During FY2023, the Group announced partial land sales and asset disposals with an aggregate consideration of approximately S$22.5 million in cash as part of its monetization and deleveraging initiatives. Cash and cash equivalents increased significantly by 81.6% to S$12.19 million, while total borrowings reduced by 36.3% to S$14.14 million as of December 31, 2023, compared to the previous corresponding period.

In January 2024, the Group completed the final partial land sale of its Batam shipyard property and received the remaining amount of the sale consideration of approximately S$7.6 million in cash. The company expects to sustain and build upon this positive momentum in FY2024 by targeting emerging growth trends within the offshore and marine industry.