Malaysia-listed marine vessels operator EA Technique posted a profit of MYR7.4 million (USD2.04 million), up 92% for the first quarter that ended on 31 March 2015, compared with MYR3.8 million in first-quarter 2014.
Revenue hiked to MYR72.7 million in first-quarter 2015 from MYR36.2 million in the same period last year, while gross profit increased 39.7% to MYR14.96 million from MYR10.7 million for the corresponding period last year. The higher earnings were attributed to the revenue recognition from the company’s engineering, procurement, construction, installation, and commissioning (EPCIC) project. The 21.8% year-on-year increase in revenue from its marine transportation and offshore storage operations also contributed to the higher earnings.
On the other hand, EA Technique managed to lower its finance cost by 17% to MYR2.8 million in first-quarter 2015 from MYR3.5 million in first-quarter 2014, while its administrative expenses increased slightly by 4% to MYR4 million from MYR3.8 million.
Moving forward, the company is optimistic in reporting higher revenue and profitability for financial year 2015.
“The group remains focused to ensure its high utilisation rate is maintained and this enables us to maximise earnings from the company’s marine vessels. In addition, the company’s relatively long-term contracts for our marine vessels provide us with a stable and recurring revenue stream,” said EA Technique in its filing to Malaysian stock exchange Bursa Malaysia.
EA Technique has so far acquired a fast support vessel for marine transportation services. An oil tanker, which has been converted into a floating storage and offloading vessel, is expected to commence operations in June 2015. The company also expects nine vessels to be delivered in stages starting from the first quarter to the fourth quarter of 2015. The expansion of the company’s fleet of marine vessels is expected to enhance EA Technique’s revenue and profitability in the near future.