KUALA LUMPUR (Aug 30): Oil and gas shipping outfit provider EA Technique (M) Bhd (KL:EATECH) booked an atypical net profit of RM94.65 million, or 7.14 sen per share, for the second quarter ended June 30, 2024 (2QFY2024), primarily due to writebacks to other income. 

The writebacks are associated with the creditor scheme and one-off expenses from its Practice Note 17 (PN17) regularisation plan, it said in a filing.

This marks the eighth consecutive quarter in the black for the group, which seeks to exit the Practice Note 17 status (PN17) by 1Q2025. The group did not declare any dividend for the quarter.

Excluding the one-off item, the group said core quarterly earnings stood at RM5.3 million in 2QFY2024. In 2QFY2023, EA Technique posted RM7.8 million in net profit, or 1.47 sen per share. 

Quarterly gross profit fell 20% to RM11.24 million from RM14.02 million in 2QFY2024, as gross margins fell to 36% from 41%. Revenue, too, fell 9.72% to RM30.60 million, from RM33.90 million in 2QFY2023. 

The weaker year-on-year core performance took into account higher administrative and other operating expenses, as well as lower revenue in absence of contributions from its floating storage and offloading (FSO) vessel due to contract expiry. 

However, its other fleets, namely fast crew boats and port operations, saw higher utilisation rate. 

For the first half of the year (1HFY2024), EA Technique recorded core earnings of RM12.2 million — after excluding the writebacks amounting to RM150.64 million — compared with a net profit of RM15.29 million in the previous half year period. 

Revenue was down 9.4% to RM61.81 million in 1HFY2024, from RM68.21 million previously. 

As at June 30, 2024, the group’s order book stood at RM136.4 million, with an additional RM281.2 million in potential contract extension.

EA Technique said it will maximise vessel utilisation rate, implement cost savings and containment through its strategic procurement programme, and ensure extension of existing contracts.

“The current challenges are temporary, and we are confident that we are nearing the end of this difficult period, with EA Technique on a clear upward trajectory,” the board said in a separate statement. 

Shares of EA Technique closed 1.5 sen or 5.08% higher at 31 sen on Friday, valuing the group at a market capitalisation of RM404.28 million.