PETALING JAYA: Elridge Energy Holdings Bhd recorded revenue of RM109.67 million and profit before tax of RM18.03 million for the first quarter ended March 31, 2025 (Q1’25).
After taxation of RM4.45 million, the group posted a net profit of RM13.58 million. The revenue and the profit were mainly contributed by customers based in Japan, Indonesia and Malaysia. As the group was only listed on the ACE Market of Bursa Malaysia in August 2024, no interim financial reports were prepared for the corresponding quarter in the previous year, and as such, no comparative figures are available.
Palm kernel shells (PKS) remain the cornerstone of the group’s operations, contributing RM95.81 million or 87.36% of total revenue. The remaining RM13.87 million or 12.64% was derived from the trading and manufacturing of wood pellets.
Executive director and CEO Oliver Yeo said, “Our first-quarter performance reflects the strong and growing demand for sustainable biomass fuel products in international markets. We are pleased to maintain our momentum post-listing and deliver healthy earnings growth in line with our strategic direction.”
According to Coherent Market Insights, the PKS industry in the Asia-Pacific is expected to grow at a compound annual growth rate (CAGR) of 8.9% from US$308.6 million in 2024 to US$366.1 million by 2026 (RM1.4 billion to RM1.7 billion). The wood pellet market in the region is forecast to expand at a CAGR of 8.6%, reaching US$12.5 billion in 2026 from US$10.6 billion in 2024.
Yeo said, “To support this growing market, we are executing our expansion plan with the development of new manufacturing sites in Pasir Gudang, Johor; Kuantan, Pahang; and Lahad Datu, Sabah. These facilities will each house two PKS production lines with a combined annual output of 240,000 metric tons per site. The capacity expansion will enhance our ability to secure long-term export contracts and reinforce our position in the regional biomass supply chain.”
A total of RM68.14 million from the group’s initial public offering proceeds has been allocated to these projects. The investments form part of Elridge Energy’s long-term strategy to capitalise on rising global demand for biomass fuels and to contribute to decarbonisation efforts in energy and industrial sectors.
“With a focused expansion strategy, a solid financial footing, and rising demand from international markets, Elridge Energy remains well positioned to deliver sustained value to our shareholders and support the global shift towards renewable energy,” Yeo concluded.
