EA Technique posts 15% increase in 3Q earnings

  • Corporate News
  • Tuesday, 24 Nov 2015

KUALA LUMPUR: E.A. TECHNIQUE (M) BHD recorded a 15% increase in net profit to RM5.5mil in the third quarter ending Sept 30, 2015, against RM4.78mil in posted in the same period last year.

Revenue improved to RM119mil compared with RM37.83mil recorded in the same corresponding quarter in the preceding year. 

In its filing with Bursa Malaysia on Tuesday, the better performance was due to the recognition of revenue from the engineering, procurement, construction, installation and commissioning (EPCIC) project it secured at the end of last year.

Nine-month net profit stood at RM26.19mil, a 140% gain against RM10.91mil EA Technique recorded last year. Revenue for the period was RM401.17mil compared with RM113.48mil 

Earnings per share for the third quarter was 1.09 sen against 1.23 sen a year ago.

The EPCIC is for a floating storage offloading (FSO) facility for a full field development project, in the North Malay Basin.

Additionally, it delivered FSO Nautica Tembikai to an oil field in July 2015, which kickstarted revenue contributions.

EA Technique said it recognised RM15.5mil in forex exchange translation loss during this quarter but since it is naturally hedged, where US dollar loans are taken for contracts which are paid in US dollar, the forex translation loss is currently unrealised.

This year, the group acquired a fast support vessel for marine transportation services. Also, one oil tanker was successfully converted into an FSO, which has been delivered to an oil field in July 2015. 

It also delivered all six new harbour tugs to Northport. Five new harbour tugs are under construction and expected to be delivered by early next year for two other clients.

“The expansion of the company’s fleet of marine vessels is expected to enhance the company’s revenue and profitability,” it said.

It will remain focussed on ensuring its high utilisation rate is maintained to enable it to maximise earnings from its marine vessels. 

“In addition, the company’s relatively long term contracts for its marine vessels has provided the company with a stable and recurring revenue stream,” it said.

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