KUALA LUMPUR: EA Technique (M) Bhd (ETB) posted a net profit of RM94.7 million for the second quarter (Q2) ended June 30, 2024 (FY24), a whopping 1,112% increase from RM7.80 million posted in the same quarter last year.
This reflects an over 11-fold profit growth within a quarter.
ETB’s earnings performance experienced a substantial upward swing in Q2 FY24, primarily due to a write-back associated with the creditor scheme and one-off expenses from the PN17 regularisation plan.
Revenue for the quarter was 9.73% lower to RM30.60 million from RM33.90 million posted in Q2 FY23.
Nevertheless, the group’s core earnings showed notable resilience amidst these temporary factors, consistently delivering profits and upholding positive cashflow.
For the first half (1H) of FY24, the group delivered impressive performance metrics, with revenue of RM61.8 million and net earnings of RM101.5 million, up from RM15.3 million in the same period last year—representing a rise of over fivefold, or 564%.
Disregarding one-off profits and expenses, Q2 FY24 achieved core earnings of RM5.3 million, totalling RM12.2 million for 1H24.
Inclusive of the two quarters in 2024, the group achieved eight consecutive quarter earnings, highlighting the company’s solid growth trajectory and resilience, with no further concern issues.
Completing the regularisation plan and the expected upliftment of PN17 anticipated by the first quarter of 2025 further reinforces this favourable outlook.
In 2024, ETB has further strengthened its position with new secured contracts, including an extension with Northport (Malaysia) Bhd for harbour tugboat services valued at RM6.4 million and a contract with Petronas Carigali Sdn Bhd for fast crew boats worth RM3.6 million.
As of 1H24, the group’s orderbook stands at RM136.4 million, with an additional RM281.2 million for the extendable period.
On June 24, 2024, ETB secured shareholder approval to advance its initiatives for integrating a white knight and completed the regularisation plan in the same month.
The group has also enhanced its board competencies with new appointments, including Datuk Wira Mubarak Hussain Akhtar Husin and Datuk Lai Keng Onn as executive directors on July 10 of this year, followed by Datuk Sri Nazir Hussin Akhtar Hussin as executive director, Tong Siut Moi and Michael Cheah Choy Chin as independent non-executive directors on July 23.
Additionally, the introduction of new shareholders led to a substantial increase in equity capital, with the balance sheet now reflecting total equity of RM239.7 million, up from RM57.5 million as of Dec 31, 2023.
In sharing the impressive Q2 results, Mubarak and Lai said Voultier Sdn Bhd’s entry reflects the confidence of two key investors in the group’s potential.
“ETB’s consistent profitability across multiple quarters highlights the strength of the business, and we are committed to maintaining this momentum.
“The current challenges are temporary, and we are confident that we are nearing the end of this challenging period, with ETB on a clear upward trajectory.
“It is also equally important for our shareholders to understand that the recent board appointments are strategic steps to secure ETB’s long-term growth.
“We are confident that these changes will enhance the group’s credibility and provide significant advantage for future expansion,” they said.
As ETB aims for upliftment by the first quarter of 2025, the group proudly reports its strong 1H 2024 financial performance, building on previous successes.
With the regularisation plan completed, ETB is well-positioned to progress and achieve continued growth.
The anticipated growth trajectory is poised to translate into stronger future financial results, further enhancing long-term value for shareholders.
