PETALING JAYA: BIMB Securities Research remains positive on Vantris Energy Bhd, saying the group’s turnaround story remains intact as it moves closer to exiting its Practice Note 17 (PN17) status following two consecutive profitable quarters and a significantly improved balance sheet.
The research house believes the restructuring exercise has placed the company on firmer footing, supported by lower financing costs, stronger operational execution and a healthier earnings profile.
“While the market remains cautious on the stock, Vantris has demonstrated tangible progress post-restructuring, delivering two consecutive profitable quarters.
“Accordingly, management has submitted its application for PN17 upliftment. We believe the turnaround remains firmly on track, supported by a stronger balance sheet, lower financing burden and improving operational execution,” BIMB Research said as it maintained its “buy” call with an unchanged target price of 72 sen.
Vantris posted a net profit of RM145.8mil for the first quarter ended April 30, 2026 of financial year 2027 (1Q27), aided by a RM70mil insurance claim and RM20mil foreign-exchange gain.
Excluding these items, core net profit stood at RM55.9mil, representing 21% of BIMB Research’s full-year earnings forecast and broadly in line with expectations.
A key positive was the sharp reduction in finance costs following the group’s debt restructuring. Quarterly finance expenses have normalised to about RM60mil, equivalent to roughly RM240mil annually, compared with about RM800mil a year before the restructuring exercise.
The engineering and construction division remained the main earnings driver, generating a profit before tax or PBT of RM199mil.
Earnings were supported by contributions from ongoing projects, cost savings following the completion of the Brazil project and the absence of receivables impairment recorded in the preceding quarter.
However, the operations and maintenance segment turned loss-making during the quarter, as two vessels underwent maintenance and were temporarily off-contract. Looking ahead, BIMB Research said Vantris’ order book stood at RM5.9bil compared with RM6.7bil previously, with 99% concentrated in the Eastern Hemisphere and only 1% exposure to Angola.
It left its earnings forecasts unchanged and continues to expect sustainable profitability, underpinned by a lower financing burden and improving operational performance.
