KUALA LUMPUR: EA Technique (M) Bhd (EATech) posted a revenue of RM31.6 million for the third quarter (Q3) ended Sept 30, 2024 (FY24) alongside a net profit that surged over fivefold to RM27.6 million, reflecting the success of its comprehensive turnaround strategy.
The company’s robust earnings highlight its disciplined cost management, high utilisation rates, and strategic creditor waivers that have significantly safeguarded its financial position.
For the first nine months of FY24, EATech recorded revenue of RM93.4 million, slightly lower than RM99.9 million in the same period last year due to the expiration of an FSO vessel contract.
Despite this, the company achieved a net profit of RM129.2 million, compared to RM20.4 million in FY23, mainly due to the writebacks to other income caused by the creditor scheme.
In addition, core earnings remain supported by EATech’s diversified portfolio in oil and gas (O&G) and marine services, as well as a robust order book that provides earnings visibility for the coming years.
The company’s firm contracts are valued at RM146.6 million, with additional optional contracts worth RM240.2 million, providing a strong foundation for continued profitability and growth.
Executive director Datuk Wira Mubarak Hussain Akhtar Husin said the company’s diversified operations across oil and gas and marine services have been instrumental in driving recovery, ensuring revenue stability, and adapting to a competitive market.
“This resilience has strengthened our profit margins, with Q3’24 gross profit rising 35% to RM13.1 million, showcasing the effectiveness of our turnaround initiatives and the robust foundation of our business model,“ he said.
Mubarak also reaffirmed EATech’s commitment to its PN17 upliftment journey, noting, “Our regularisation plan is complete, and we are diligently working toward completing the final steps to achieve full regulatory compliance.
“This anticipated upliftment from PN17 will not only enhance EATech’s credibility in the industry but also allow us to pursue high-value, large-scale projects aligned with our improved financial and operational capacities,“ he said.
EATech’s strategic focus remains on long-term, stable contracts that contribute to recurring revenue.
The company’s flagship FSO vessel Nautica Tembikai is currently available and positioned for deployment, with active plans to maximise its contribution to earnings.
EATech has established a scalable, resilient model that delivers strong margins and growth across varied market conditions by balancing short-term gains with commitments to long-term contracts.
“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.
“Our commitment remains steadfast in delivering sustained, long-term value to shareholders and stakeholders, anchored in our vision of growth through strategic initiatives, operational resilience, and financial strength,“ Mubarak said.
